Tyco Electronics snaps up ACD as Pace acquires 2Wire

Tyco Electronics has acquired fellow vendor ADC Telecommunications in a deal worth approximately $1.25 billion, giving it a stake in the market for broadband connectivity.

The move will add to Tyco Electronics’ huge existing portfolio of manufactured products, which ranges from electronic components to undersea cable systems. The acquisition will also provide the company with greater geographic reach, given ADC’s strong presence in telecoms markets like China and India.

“This acquisition significantly strengthens our fibre connectivity product offer and also provides us with a wireless connectivity product line, which already represents in excess of 20% of our total business today,” said Sheri Woodruff, vice president of corporate communications at Tyco Electronics. “Virtually every major region of the world will be expanding their broadband networks over the medium to long term, due to the business and consumer need for data.”

UK vendor Pace is also adding broadband connectivity to its offer, after agreeing to acquire US company 2Wire in a deal worth $475 million.

Pace says the move will broaden its customer base from cable and satellite operators into the internet TV market, as it looks to exploit relationships that 2Wire has established in the north American market with operators like AT&T.

“The acquisition of 2Wire by Pace appears to be yet another example of consolidation in the telecoms market, this time in the increasingly commoditised customer premise equipment (CPE) sector,” said Erik Keith, principal analyst for fixed access infrastructure at consulting firm Current Analysis. “AT&T’s U-verse network is 2Wire’s flagship customer account, and for Pace to gain entry to this network it is worth the cost of acquisition alone, not to mention the rest of the north American market.”