PairGain Technologies' Shareholders Approve Acquisition by ADC
Combined Companies to Become a Leading Supplier of DSL Broadband Access Systems
MINNEAPOLIS & TUSTIN, Calif.--(BUSINESS WIRE)--June 26, 2000-- ADC (Nasdaq: ADCT - news, www.adc.com - news) and PairGain Technologies, Inc. (Nasdaq: PAIR - news, www.pairgain.com - news) today announced that PairGain's shareholders approved ADC's proposed acquisition of PairGain. Closing of the acquisition is expected to be completed by the end of June 2000, subject to customary closing conditions.
``We are pleased with the approval of this transaction by our shareholders and we look forward to realizing the tremendous synergies of combining these companies as a leading global supplier of DSL systems that enable communications service providers to deploy broadband communications services to residences and businesses over high-speed connections,'' said Michael Pascoe, president and CEO of PairGain.
Pursuant to the acquisition, which is structured as a tax-free reorganization for U.S. federal income tax purposes and is intended to be accounted for as a pooling of interests, each share of PairGain's common stock will be converted into 0.43 share of ADC common stock. On June 14, 2000, ADC announced a two-for-one stock split of ADC's common stock payable on July 17, 2000 to shareowners of record as of the close of business on June 26, 2000. As a result of the stock split, the exchange ratio of 0.43 share of ADC common stock will be increased to 0.86 share of ADC common stock, but such additional shares in excess of the original exchange ratio will not be distributed prior to July 17, 2000. |
