ADC Buys in China

ADC to acquire Chinese broadband equipment vendor Century Man Communication

November 13, 2007

2 Min Read

MINNEAPOLIS -- ADC (NASDAQ:ADCT) ( today announced an agreement to acquire Century Man Communication (, a leading provider of communication distribution frame solutions in China. The acquisition is designed to provide four key benefits to ADC: (1) accelerate ADC's growth potential in China, (2) expand its product offerings, (3) add additional low-cost manufacturing facilities in China, and (4) provide a price and feature competitive product offering for effectively competing in the high-growth, developing markets. The addition of Century Man Communication moves ADC closer to its long-term goal of being the leading global provider of network infrastructure solutions. Century Man Communication had sales of approximately US $40 million in the 12 months ending September 30, 2007.

"Century Man Communication strengthens ADC's presence in China with telecommunications service providers, including most of the major operators and original equipment manufacturers that are in China already or relocating manufacturing to China. The strategic value of this acquisition is created by accelerating ADC's growth potential in the China connectivity market, as well as providing ADC with additional products designed to meet the needs of developing countries in the other strong growth markets outside of China. Developing countries in Asia, Eastern Europe, Africa and Latin America are important to ADC as they are investing in communications infrastructure due to significant demand for communications services. In many cases, these developing countries do not need the same product feature sets and capabilities required in developed markets," said Robert E. Switz, president and CEO of ADC. "This acquisition fits well with our strategy for capturing the strong potential of faster growing geographies outside the United States, as well as becoming more cost efficient in order to increase profitability. Acquiring Century Man Communication gives ADC a dramatically expanded presence in the China connectivity segment, while complementing ADC's existing base of manufacturing assets within the country. The acquisition is expected to be non-dilutive to earnings per share, excluding acquisition-related charges and acquired intangibles amortization in the first two fiscal years of operation, post close, and accretive thereafter."

"I am excited for the opportunity to combine the operations of Century Man Communication and ADC and strengthen the expansion of our markets to serve our important Chinese and developing market customers with a full range of broadband connectivity solutions," said Mr. Yuan Dan, president and CEO of Century Man Communication. "ADC's strong financial and market position, significant intellectual property portfolio and global reach of sales into more than 130 countries when combined with Century Man Communication's strong market position within China will create a company with the resources, distribution and support to make our offerings the best solutions for our customers worldwide."

On closing the acquisition, Mr. Yuan Dan will become General Manager of ADC Century Man Communication China.

ADC (Nasdaq: ADCT)

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