ADC, Andrew to merge

Vendors ADC and Andrew Corporation are planning to merge in a stock-for-stock deal, the companies said today. Westchester, Ill.-based Andrew, which has holdings in wireless antennas and components, satellite and other markets, will become a subsidiary of ADC, under the terms of the companies' definitive agreement, with ADC president and CEO Bob Switz remaining in charge of the combined firm.

Based on most recent financial reports, the companies have combined sales of about $3.3 billion. Shareholders of Eden Prairie, Minn.-based ADC will own about 56% of the merged entity, with Andrew shareholders keeping the remaining 44%.

“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," Switz said in a statement.

Ralph E. Faison, president and CEO of Andrew, added, “As we join ADC’s leadership position in wireline connectivity solutions and Andrew’s leadership position in wireless infrastructure solutions, ADC and Andrew will have a substantially greater global presence, customer base, economies of scale, product breadth, innovation ability and financial strength. 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 will serve as a consultant to the combined company to facilitate an efficient transition.

The combined company will have a range of solutions for both wireline and wireless connectivity, including systems for copper, coaxial, fiber, radio frequency, broadcast and enterprise networks, as well as antennas, cable products, base station subsystems, in-building and distributed coverage, geolocation systems and satellite communications. About 23% of the combined sales will be to wireline customers, 44% to wireless customers, 6% to enterprise customers, 24% to original equipment manufacturers (OEM) and 3% to other customers.