Pace to lay out $310M for Aurora Networks
Pace is buying Aurora Networks for $310 million, a deal that will combine the former’s set-top and gateway business with the latter’s fiber access network portfolio.
"Acquiring Aurora will allow Pace to expand beyond our core business and build deeper and more embedded relationships with our customers, which the Company believes will strengthen Pace's position as a market leading solutions provider for the PayTV and broadband industries," Pace chairman Allan Leighton said in a statement.
Pace will also make an additional $13 million payment when the deal closes for tax benefits that it expects to recover in the three years after the acquisition.
The combined company would be considered highly profitable, serving over 200 customers in 50 countries, including all of the top 10 cable operators in the U.S. Pace believes the combination will also have significant opportunities for cross-selling.
Mike Pulli, CEO of Pace, said, “With a leading presence in products that are increasingly important for cable operators as they fulfill consumers' constant demand for ever increasing bandwidth, this transaction further strengthens our relationships with our customers. The combined business will have strong financials and a broad market leading portfolio that will provide excellent opportunities for our customers, employees and shareholders alike."
Pace said it will treat Aurora as a strategic business unit, with separate profit and loss (P&L) to retain focus and accountability for business performance. Pace said it intends to maintain the Aurora brand, and keep Aurora’s current management team in place after the acquisition. Pace said it will put in place retention and incentive arrangements for key management.
Guy Sucharczuk, CEO of Aurora, said: "Joining with Pace will create a market leading PayTV and broadband solution portfolio and a leading solutions provider to operators globally. The management team and I are excited to be joining and believe the combined organization will go from strength to strength."