SALTAIRE, U.K. -- Pace plc ("Pace") and 2Wire, Inc. ("2Wire") today announce that the companies have reached an agreement under which Pace proposes to acquire 2Wire for cash consideration of $475 million. The consideration includes 2Wire's balance sheet cash at closing, expected to be approximately $55 million.

Neil Gaydon, Chief Executive Officer of Pace plc, commented: "This acquisition will strengthen our Americas business, extending Pace's US market coverage with entry into the tier one telco market. We have built a strong position in the US with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements. 2Wire's software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth."

Pace plc