Swiss electronic component manufacturer Tyco Electronics Limited (Tyco Electronics) agreed yesterday to buy ADC Telecommunications Inc (ADC) for approximately $1.25 billion, in order to bolster its position as a leading global provider of broadband connectivity products.
According to the terms of the deal, Tyco Electronics will pay $12.75 per ADC share in cash, and expects that the transaction would be accretive to its earnings by 14 cents a share in the first full year.
Tyco Electronics' chief executive officer Tom Lynch, said, ''The combination of ADC and Tyco Electronics creates an industry leader, with the scope and geographic scale to help customers deliver needed capacity, from the core of the network all the way to the end user."
Switzerland-based Tyco Electronics Ltd is a leading global provider of engineered electronic components, network solutions, speciality products, and undersea telecommunication systems.
The company has manufacturing facilities in 25 countries employing around 78,000 people. The company reported an annual turnover of over $10 billion for the fiscal 2009 and its stock is listed on the New York Stock Exchange.
Tyco Electronics was spun-off from the diversified business group Tyco International Ltd in 2007.