ADC and Andrew Corporation Reach Merger Agreement

5:30 am on June 1, 2006 | Category: Business, Corporate

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Telecom equipment vendors, ADC and Andrew Corporation have agreed on a stock-for-stock merger deal, the companies revealed yesterday.

Under the terms of the agreement, the Westchester, Illinois-based Andrew Corp., will become a subsidiary of ADC, and its shareholders will gain a 44% stake in the combined entity.

The two firms boast a combined sales total of $3.3 billion annually, and have holdings in both wireless and wireline communication markets.

“Together, we’re better positioned to assist our customers worldwide and capture growth opportunities that result from the convergence of our customers’ next-generation wireless, broadband, video, data and voice services,” said ADC president and CEO, Bob Switz, who will be continue to lead the merged entity.

Andrew Corp. CEO, Ralph E Faison, says that the two companies combined will have a “substantially greater global presence, customer base, economies of scale, product breadth, innovation ability, and financial strength” than ever before.

“The synergies that we expect to create will enable us to better serve our converging customer base worldwide as their wireline and wireless networks deliver high-speed, any-content, anywhere communications services,” Faison went on to say.

The merger of these two telecom vendors further reflects a growing trend in the global telecom industry, towards corporate consolidation. Both equipment vendors and network operators are realizing that mergers will give them a stronger competitive position in the rapidly evolving market.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock