NetStar snaps up Comtech Engineering for $80 million

Network systems integrator NetStar is on the acquisition warpath, and is likely to succeed where some of the high-profile dotcoms have failed.

NetStar Group, a builder of internet network infrastructure, has agreed to acquire Comtech Engineering and Consultant Company, a Hong Kong-based systems integrator, for $80 million in stock. The deal creates one of the biggest internet network solutions providers in Greater China.

Comtech shareholders will receive one NetStar share for every 2.2 Comtech shares held. The transaction values each Comtech share at $9.63. All Comtech shareholders have agreed to swap their shares, NetStar says. Comtech's biggest shareholder is Baring Private Equity Fund, which holds 52.05%. Comtech managing director K.F. Cheung holds 19.23% Intel holds 10.26% and Vanda Systems Communications holds 18.46%, NetStar says.

The acquisition is the...

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