Tyco Electronics buying ADC for $1.24B
Tyco Electronics Ltd. said Tuesday that it will acquire ADC Telecommunication Inc. in a deal valued at $1.24 billion.
Switzerland-based Tyco Electronics, which was spun off from Tyco International, says it will pay $12.75 per share in cash for the networking equipment maker, a 44 percent premium over Monday's closing price.
Tyco Electronics said the acquisition will help it provide broadband access to networks around the world. The deal is expected to boost its per-share profit by 14 cents in the first full year. That figure excludes acquisition costs.
The deal is expected to close in the fourth quarter, pending regulatory approval.
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Also Tuesday, Tyco Electronics said it returned to profitability in the third quarter, reporting net income of 72 cents per share during the period that ended on June 25. Excluding one-time items, its adjusted earnings came to 70 cents per share. During the same period last year, Tyco Electronics lost 16 cents per share.
Revenue climbed 23 percent to $3.1 billion. Analysts surveyed by Thomson Reuters expected Tyco Electronics to earn 63 cents per share with revenue of $3.04 billion.
Tyco Electronics will formally report full results on July 22.
(Copyright 2010 by The Associated Press. All Rights Reserved.)