Tii Network Technologies, Inc. (TIII) said it signed a definitive merger agreement with Kelta, Inc., pursuant to which Kelta will acquire Tii Network Technologies for $2.15 a share, or total consideration of about $33.1 million.

The merger consideration represents an approximately 48% percent premium over the closing price of Tii Network Technologies' common stock as quoted on the website of the NASDAQ Stock Market on May 11, 2012.

Kelta intends to fund the acquisition with a combination of existing cash and funds available under Kelta's current credit facilities.

Brian Kelley, President and Chief Executive Officer of Tii Network Technologies, said, "...Not only does it provide our stockholders with a significant premium to the market price of our stock, it also represents a significant benefit to our customers and employees. We have had a positive, long term working relationship with Kelta, the contract manufacturer of our products. With Kelta's financial and other resources and capabilities, the Company will be better able to develop and produce new and improved products to meet the ever changing technology requirements of our Telco customers."

Tii Network Technologies expects the transaction to close in the third quarter of 2012.