MINNEAPOLIS and WESTCHESTER, Ill. – ADC Telecommunications and Andrew Corporation yesterday announced that they will merge – creating a US$3.3 billion "global leader in wireline and wireless network infrastructure solutions," says the press release.
The wireline and wireless markets for next-generation broadband, video, data and voice services are rapidly expanding and have strong growth potential. Carriers in every part of the world are upgrading their networks to expand high-speed data and video offerings. These trends hold significant promise for the strategic combination of ADC and Andrew, say the companies.
"Today we are announcing plans for a promising new growth stage for our two great companies. With this strategic combination, we will be a world leader in communications network infrastructure products and services. The strategic, operational and financial synergies of our two strong companies create a significant opportunity to grow value for our customers, shareholders and employees," said Robert E. Switz, president and chief executive officer of ADC, who will be president and CEO of the combined company after closing.
As a combined company, ADC and Andrew will be a leader in wireline and wireless infrastructure solutions with strong global market presence and customer relationships. The strengths of the combined company, according to the joint press release, include:
* Broad-based connectivity solutions for copper, coaxial, fiber, radio frequency, broadcast and enterprise networks, combined with broad-based wireless solutions for antennas, cable products, base station subsystems, in-building and distributed coverage, geolocation systems and satellite communications.
* Approximately $3.3 billion in sales (on a pro forma basis for the trailing twelve months) into more than 140 countries comprised of approximately 23% to wireline customers, 44% to wireless customers, 6% to enterprise customers, 24% to original equipment manufacturers (OEM) and 3% to other customers. The combined customer base currently includes nearly all major wireline and wireless service providers in the world, as well as many of the world’s largest communications OEMs, and large corporate, government and education enterprises.
* Geographic sales distribution (on a pro forma basis for the trailing twelve months) of approximately 53% in the United States & Canada, 29% in Europe, Middle East and Africa, 11% in Asia-Pacific and 7% in Latin America.
* Approximately 20,000 employees worldwide of which approximately 37% are in the United States & Canada, 22% are in Europe, Middle East and Africa, 25% are in Asia-Pacific and 16% in Latin America.
* Facilities around the world including locations in 35 countries.
* Strong research and development efforts and a significant portfolio of U.S. and foreign patents on wireline and wireless infrastructure solutions.
The stock-for-stock merger will see Andrew become a wholly owned subsidiary of ADC. So far, the market hates the deal as ADC shares plunged from $23 on Monday, prior to the deal’s announcement to a close of $17.40 on NASDAQ today.
No word yet on how this may affect companies distributing products from these companies in Canada.
