|
ADC acquires Broadband
|
 |
September 20, 2000: 2:17 p.m. ET
Fiber optics firm paying $2.3B stock for Internet gear company
|
NEW YORK (CNNfn) - Fiber optics provider ADC Telecommunications Inc. said Wednesday it is acquiring privately held Broadband Access Systems, a supplier of high speed Internet cable gear, for $2.3 billion in stock.
Terms call for ADC to issue common stock valued at $2.3 billion for all outstanding equity in Broadband. The number of ADC shares to be issued will be based on the average closing price of ADC stock for the 5 trading days prior to closing and is subject to a collar on the value of ADC's stock of $34.13 to $41.71.
ADC provides fiber optics, network equipment, software and integration services for broadband Internet communications, including video and voice, telephone, cable television, wireless and corporate networks.
 ADC, based in Minnetonka, Minn., reported sales of more than $2.8 billion last year and employs more than 20,000 at facilities in the U.S., Scotland, Mexico and China. The company's stock has done well this year, hitting a high of $49 in July, up from a 52-week low of $9.32.
In Wednesday trading, ADC (ADCT: Research, Estimates) shares dropped $2.75 to $32.13, an 8 percent dip.
Westborough, Mass.-based Broadband Systems, which has about 200 employees, provides high-speed broadband access switches for cable operators and Internet service providers including Adelphia, Time Warner (parent company of CNNfn), interTECH, Tele-Media and Utilicom.
The acquisition is a windfall for Broadband's venture capital backers. The company received more than $72 million of funding from investors including Soros Private Equity Partners, Vulcan Ventures and YAS Broadband Ventures. The company's partners include TAIS, an independent operating company owned by Toshiba America Inc., Emperative Inc. and Into Networks.
"Broadband Access Systems' products will form the cornerstone of ADC's strategy to offer next-generation, Internet Protocol (IP) systems for the delivery of Internet and voice services over broadband networks," ADC, Senior Vice President Arun Sobti said.
"Broadband Access Systems' technologies also have powerful synergies for the delivery of IP-based services over ADC's DSL and wireless platforms," Sobti said.
The acquisition is expected to be completed before year-end and will be accounted for as a pooling of interests. 
|
|
|
|
|
|
ADC
Broadband Systems
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
