Arbinet to be acquired by Primus

HERNDON, USA: Arbinet Corp., a leading provider of telecommunications services to fixed and mobile operators, has signed a definitive agreement to be acquired by Primus Telecommunications Group Inc., a global facilities-based integrated provider of advanced telecommunications products and services in an stock-for-stock merger transaction.

Under the terms of the merger agreement, which has been approved by the Board of Directors of Arbinet, upon recommendation by its special committee which was appointed to evaluate the advisability of the transaction, and by the Board of Directors of Primus, Arbinet common shareholders will receive shares of Primus common stock in exchange for the Arbinet common stock they own.

The transaction is valued at an aggregate value of approximately $28 million. Based on the companies’ current capitalization, Arbinet shareholders will be expected to own approximately 23 percent of the combined company, and Primus shareholders will be expected to own approximately 77 percent of the combined company upon the closing of the transaction.

The agreement contains a go-shop provision under which Arbinet may solicit alternative proposals from third parties during the next 45 calendar days. There can be no assurances that this process will result in an alternative transaction.