Andrew Bulks Up in Wireless

Andrew Bulks Up in Wireless
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In radio, we know Andrew for cable. But the company is making big headlines on the wireless front ... really big. Following completion of a $500 million deal announced this week, Andrew Corp. will have about 7,000 employees and pro forma annual revenues of $1.3 billion.
Andrew, which trades on NASDAQ, signed a deal to acquire Allen Telecom Inc., a New York stock exchange company, in a stock-for-stock transaction.
The company said the deal establishes it as "the preeminent global wireless infrastructure subsystems supplier. ... The combined company will be the number-one global supplier of coaxial cables, RF power amplifiers, terrestrial microwave antennas, network geolocation solutions, and repeaters and in-building systems; and the number-two global merchant provider of filters and base-station antennas."
The transaction is set up to qualify as a tax-free exchange. Andrew believes it can save $40 million a year through combining operations and other "efficiencies."
Allen shareholders will receive 1.775 shares of newly-issued Andrew stock for each Allen share. "Based on Andrew's closing price of $9.01 per share on Feb. 14, (this) represents a 21% premium over Allen's share price," the companies said.
Andrew CEO and President Ralph Faison called it a "landmark transaction that fundamentally redefines the dynamics of our industry." Completion of the transaction is expected by the end of June. Shareholders must approve; the respective boards have done so. Info: www.andrew.com or www.allentele.com.


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