C-COR.net Corp. announced Monday that it will buy a portion of ADC
Telecommunications Inc.'s cable assets for $32 million and assumption of
$400,000 in debt and other liabilities.
Under terms of the deal, C-COR.net will absorb ADC's broadband-communications
division, which has locations in Meriden, Conn.; Buenos Aires; and Klagenfurt,
Austria. That unit primarily manufactures digital-video transport and modular
headend and outdoor node equipment for sale to cable, telco and broadcast
customers.
The deal is expected to close by the end of August. At that time, John
Caezza, the current president and general manager of ADC's BCD unit, will become
vice president and general manager of C-COR.net's telecommunications-equipment
group.
ADC BCD employs about 400 people, and 350 of that group will likely stay with
C-COR.net, chairman and CEO David Woodle said during a conference call with
analysts and reporters.
Woodle said the buy will help C-COR.net to expand its international presence
in areas such as Latin America and Europe, as well as to pick up new domestic
customers such as Cablevision Systems Corp.
Prior to the market slowdown, ADC's BCD unit had peak revenues of between
$150 million and $160 million, Woodle said, noting that C-COR.net will
eventually introduce products that combine the technologies of both
companies.
C-COR.net said the acquisition will add about $15 million in revenue and two
to three cents in earnings per quarter following a six-month transition period.
The company also expects to incur between $6 million and $8 million in
nonrecurring expenses to integrate BCD's product lines and facilities.
The purchase would be the latest in a string for C-COR.net, which is
attempting to expand its trio of business lines: transport distribution
products, technology services and network-operations management.
Last week, C-COR.net said it would flesh out its broadband-services arm via
the purchase of Simi Valley, Calif.-based Aerotec Communications Inc. for about
$2.25 million in cash.
