Member Article

Saltaire broadband technology firm Pace in acquisition of US firm

Pace plc has acquired Aurora Networks, a Californian manufacturer of high bandwidth optical transport systems.

Pace described Aurora Networks as a “highly profitable and growing business” with blue chip customer base and market leading positions. They also serve over 200 customers in 50 countries, including all of the top 10 cable operators in the US.

On completion of the acquisition, Pace paid Aurora shareholders US$323 million comprising a headline consideration of US$310 million (on a debt and cash free basis) plus a further US$13 million relating to tax benefits to be recovered over the three years post acquisition.

The consideration for the acquisition is subject to post-completion cash and working capital adjustments.

A five year term loan for $310m to finance the acquisition of Aurora Networks Inc plus a new five year $150m revolving credit facility is now in place.

Allan Leighton, chairman of Pace, said: “Since the announcement of the Pace Strategic Plan on 17 November 2011, we have consistently delivered on it, achieving almost all of the milestones and targets laid out at that time and there remains significant opportunity for development of the core business.

“The acquisition of Aurora represents an important evolution in this process and enhances our strategy to grow a broader platform across Hardware, Software and Services.

“Acquiring Aurora will allow Pace to expand beyond our core business and build deeper and more embedded relationships with our customers, which the Company believes will strengthen Pace’s position as a market leading solutions provider for the PayTV and broadband industries.”

Mike Pulli, CEO of Pace, said: “Following a strong first half in 2013, good progress has been made in the period with continued momentum across the business.

“I am pleased to be able to announce the acquisition of Aurora. Aurora is a leading player in the pivotal area of Optical Transport and Access Network solutions, with a complementary overlap to Pace’s blue-chip customer base and a strong and seasoned team of talented and innovative cable industry professionals.

“With a leading presence in products that are increasingly important for cable operators as they fulfil consumers’ constant demand for ever increasing bandwidth, this transaction further strengthens our relationships with our customers.

“The combined business will have strong financials and a broad market leading portfolio that will provide excellent opportunities for our customers, employees and shareholders alike.”

Guy Sucharczuk, CEO of Aurora, said: “Joining with Pace will create a market leading PayTV and broadband solution portfolio and a leading solutions provider to operators globally.

“The management team and I are excited to be joining and believe the combined organisation will go from strength to strength.”

This was posted in Bdaily's Members' News section by Clare Burnett .