Tyco Electronics to pay $US1.25 billion for ADC

Stuart Corner
Wednesday, 14 July 2010 07:48

IT Industry - Deals

Tyco Electronics is to acquire ADC, a move that will create a powerful new player in the market for supplying FTTH equipment to NBN Co, and a host of other telecoms market segments.

ADC owns Krone, now ADC Krone, which operates a large facility in NSW manufacturing communications connectivity products for wired and wireless networks, enterprise, carriers and broadcasters.

ADC claims that its OmniReach FTTX Infrastructure Solutions are "the industry's first platforms designed from the ground up to meet the unique requirements of FTTX networks."

Tyco Electronics will pay $US12.75 per share in cash for ADC, valuing the company at approximately $US1.25 billion. It says the move will position its Network Solutions segment as "a leading global provider of broadband connectivity products to carrier and enterprise networks around the world."

Tyco Electronics' CEO, Tom Lynch, said: "ADC is a great fit as we continue to execute our strategy to create strong leadership positions in all of our connectivity businesses'¦The combination of ADC and Tyco Electronics creates an industry leader, with the scope and geographic scale to help customers deliver needed capacity, from the core of the network all the way to the end user."

ADC chairman and CEO, Robert E Switz, said: "ADC has a strong heritage of providing innovative wired and wireless solutions that have enabled the expansion of advanced broadband networks worldwide. As part of Tyco Electronics, our organisation's ability to serve the world's leading telecommunications services providers and enterprises will be strengthened significantly."

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