ADC to acquire Broadband Access
ADC, a global supplier of fiber optics, network equipment, software and integration services for broadband, multiservice networks, is set to buy Broadband Access Systems, a supplier of next-generation, IP access platforms. The stock-for-stock transaction is valued at $2.25 billion.
Broadband Access' IP access platform allows communications service providers to deliver Internet access and IP-based voice services to consumers and businesses.
"Broadband Access Systems products will form the cornerstone of ADC's strategy to offer next-generation, IP systems for the delivery of Internet and voice services over broadband networks," Arun Sobti, Senior Vice President of ADC and President of ADC's Broadband Access and Transport Group, said in a statement.
While currently directed at the cable market, Broadband Access' technologies also have synergies for the delivery of IP-based services over ADC's DSL and wireless platforms. Broadband Access' Cuda 12000 IP Access Platform is the industry's first carrier-class cable modem termination system to receive DOCSIS Qualification. This qualification identifies Broadband Access Systems as one of the first in the market to provide next-generation access solutions for IP-based services.
The proposed transaction is expected to be complete by the end of 2001. The close of the proposed merger is subject to the approval of Broadband Access stockholders, receipt of required regulatory approvals and other customary conditions.