Boston Technology to be acquired by Comverse Technology for 3.3 times revenue

The Deal: Comverse Technology has agreed to acquire rival Boston Technology for $845.2 million in stock, or $30.96/ share. Boston Technology shareholders will receive 0.65 share of Comverse for each Boston Technology share. Upon completion of the deal, shareholders of Comverse will own 56% of the combined company. Comverse expects to issue 17.7 million shares to acquire Boston Technology's 27.3 million shares outstanding. On the news, Comverse closed down 87.5, or 1.8%, at $47.625/ share while Boston Technology fell $2, or 6.3%, to $29.625/ share.