Terms of the agreement include $50.1 million in cash for sale of stock of ADC Mersum Oy in Oulu, Finland. Dresdner Kleinwort Wasserstein served as financial advisors and assisted ADC with the sale. ADC will retain its tower top amplifier business presently operated by ADC Mersum Oy. Proceeds of the sale will be used to further strengthen ADC's financial position. The sale, expected to close within the next 30 days, affects approximately 600 ADC employees in Finland. In addition, the sale is subject to standard closing conditions including, among other items, Finnish anti-trust clearance.
"This transaction further strengthens ADC as we continue to focus our broadband access portfolio on a strategic group of products and services," said Bob Switz, chief financial officer of ADC. "We are concentrating on IP cable, DSL, optics, and software supported by our connectivity and systems integration solutions - key areas where we believe ADC has sustainable advantages and potential to accelerate earnings when telecommunications capital spending rebounds."
In addition to high frequency subsystems, San Diego-based REMEC, Inc. develops and manufactures sophisticated wireless communications equipment used in the defense industry, including communications equipment integrated into tactical aircraft, satellites, missile systems and smart weapons. The company manufactures products that operate at the full range of frequencies currently used in wireless communications transmission, including at RF microwave frequencies and millimeter wave frequencies. With its product offerings, REMEC serves the worldwide mobile wireless communications market and the global fixed access broadband wireless market.
Employees transferred with the sale of the RF filtration equipment are in addition to the company's previously announced reduction of 9,500 positions, a reduction which was substantially completed at the end of ADC's third fiscal quarter. ADC's previously announced divestitures include its Broadband Communications Division sold to C-Cor.net, and the sale of the Access Products Division and Broadband Wireless Group to Platinum Equity Holdings.
About
REMEC
REMEC is a leading designer and manufacturer of high
frequency subsystems used in the transmission of voice, video and data traffic
over wireless communications networks and in defense electronics applications.
About ADC
ADC is The Broadband Company(TM). ADC's fiber optics,
network equipment, software and integration services make broadband
communications a reality worldwide by enabling communications service providers
to deliver high-speed Internet, data, video and voice services to consumers and
businesses. ADC (Nasdaq:ADCT) is a Fortune 500 company with sales into nearly
100 countries. Learn more about ADC Telecommunications, Inc. at www.adc.com.
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