Hillsoboro, Oregon-based KEG is the parent company of high-speed network access equipment manufacturer Kentrox LLC.
KEG paid $3.45 per Applied Innovation share. That represents a 7.8% premium over stock’s closing price last Thursday.
Both companies’ board of directors approved the deal which is expected to close at the end of the second quarter. Applied Innovation founder Gerard Moersdorf, who has 37% voting rights of the Dublin, Ohio-based firm has also given the merger his blessing.
KEG said it will bring all of Applied Innovation’s staff on board.
Once the deal is wrapped up Investcorp Technology Partners, an investor in KEG Holdings, will own a controlling interest in the combined company.
Applied Innovations hardware and software networking technology is used in over 34,000 sites worldwide.
