Advertisement to build out int'l biz with Philips Broadband buy

Sun, 07/07/2002 - 8:00pm
Jeff Baumgartner

Veteran broadband equipment and service supplier announced Monday that it will widen its international scope by about threefold via a $78 million deal to snap-up Philips Broadband Networks (PBN).

The deal, expected to close by the second half of this year, will add about $100 million in annual accretive revenue, Chairman and CEO David Woodle said the addition of PBN will allow to triple its international business. PBN is a division of consumer electronics giant Royal Philips Electronics.

Woodle said some PBN products are complementary to's, but expects that combining the two companies will enable to build optical and RF systems faster than it could on its own.

PBN makes both optical and RF (radio frequency) transmission equipment for cable operators, including nodes, network amplifiers, line extenders and network "optimizing" technologies such as dense wave division multiplexing (DWDM). About half of the division's business comes from U.S. operators, with the rest largely spread across Europe, including France and Spain, and the Asia Pacific Region.

PBN employs roughly 500 people, supports sales and service organizations in 12 countries, and operates a design and production facility in Manlius, N.Y.

The deal will essentially end Philips' foray into the transmission side of the cable broadband sector. Though Philips' PBN unit has developed some domestic cable business, the consumer electronics division of Philips has not had as much success selling digital set-tops to US MSOs, and has pulled back its efforts there, including a deal with AT&T Broadband to deliver 1 million advanced boxes.

Woodle said and PBN expect to complete most of the integration of the two companies before the end of 2002. During that time, Woodle said his company will determine which PBN products add to's portfolio and which ones potentially overlap existing products.


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