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ADC announces agreement to acquire LGC Wireless
October 22, 2007
MINNEAPOLIS -- ADC (NASDAQ:ADCT - News)(www.adc.com) today announced an agreement to acquire LGC Wireless (www.lgcwireless.com), a market leader in specialized wireless coverage and capacity solutions for carriers and the enterprise. This acquisition represents a central part of ADC’s All IP Radio Access Network (IP RAN) strategy announced earlier this year. LGC’s network systems mobile switching and wireless office solutions will augment ADC’s existing outdoor solutions. The acquisition will further enhance and add scale to ADC’s existing line of wireless capacity and coverage solutions in a fast-growing market. It will also support ADC’s long-term goal of being the leading global provider of network infrastructure solutions. LGC Wireless had sales of $83 million in the last 12 months ended September 30, 2007 compared to sales of $43 million in the year ended December 31, 2006. The company has approximately 240 employees. A presentation describing this strategic acquisition can be obtained at http://www.adc.com/investorrelations/presentations/.
“LGC Wireless is the acknowledged leader in in-building wireless solutions, which is a strong growth market and is in the early stages of its growth curve. This acquisition fits well with our strategy for capturing the strong growth potential of the wireless capacity and coverage market. Acquiring LGC Wireless further diversifies our revenue base by more than doubling our wireless business to over 9% of total ADC sales and will increase ADC’s overall growth rate. This acquisition is expected to be non-dilutive to earnings per share in fiscal 2008 and accretive thereafter, excluding acquisition-related charges, acquired intangibles amortization and stock option expense,” said Robert E. Switz, president and CEO of ADC. “The strategic value of this acquisition is created from combining ADC’s advanced outdoor wireless solutions, global scale, worldwide customer base, and innovations in connectivity with LGC Wireless’ advancements and market leadership in the in-building wireless solutions market. The transaction thereby creates a leading platform for serving carriers’ capacity and coverage needs.”
“ADC has a long history in wireless coverage and capacity solutions with important digital wireless intellectual property. We have been investing in a portfolio of new products built on a vision of the next-generation radio access network,” Switz added. “We are building and marketing IP radio access nodes and distributed antenna systems for several important application areas: the home, business and outdoor venues, such as campuses, public sites and hard-to-serve areas like tunnels and canyons. These products are designed to address both coverage and capacity for emerging data and video intensive wireless handsets while providing attractive economics for carriers.”
ADC (Nasdaq: ADCT)
LGC Wireless
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