Pace, the set-top box manufacturer, is seeking to acquire US broadband services provider 2Wire with a £308 million cash consideration.
According to the company, the acquisition price is inclusive of its target’s balance sheet at closing, which it…
Pace, the set-top box manufacturer, is seeking to acquire US broadband services provider 2Wire with a £308 million cash consideration.
According to the company, the acquisition price is inclusive of its target’s balance sheet at closing, which it expects to be around £36 million. The deal will also boost Pace’s aspirations to expand beyond cable and satellite and into the US tier one telco market.
2Wire’s products and services include multi-service media platforms, residential gateways and remote management systems.
Neil Gaydon, chief executive of Pace, said 2Wire would help build on the satellite group’s operations across the Atlantic, enabling it to address a full range of US operator requirements.
“2Wire’s software and gateway expertise will further drive development of our home entertainment convergence strategy,” said Gaydon.
“The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth.”
Pace aims to use a combination of existing cash resources and new banking facilities, which are under negotiation, to finance the acquisition.
The company is awaiting approval from 2Wire’s shareholders, together with regulatory consents and the finalisation of bank financing arrangements, for the acquisition to proceed.
Following the waiver of all conditions, Pace expects the transaction to close in the fourth quarter of the current financial year.
Evercore Partners is acting as Pace’s financial adviser on the acquisition. JPMorgan Cazenove and RBS Hoare Govett are acting as its corporate brokers.
