ADC Completes Acquisition of PairGain Technologies
Business Wire - June 28, 2000 05:15
MINNEAPOLIS--(BUSINESS WIRE)--June 28, 2000--
ADC Becomes a Leader in DSL Broadband Access Systems
ADC (Nasdaq: ADCT, www.adc.com) today announced that it has completed the acquisition of PairGain Technologies, Inc. (Nasdaq: PAIR, www.pairgain.com). Effective today, PairGain's shares will no longer be traded on The Nasdaq Stock Market. 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. A letter of transmittal setting forth the procedure for exchanging certificates representing canceled PairGain shares for ADC stock certificates will be sent to PairGain's shareholders by Norwest Bank Minnesota, N.A. (Telephone: (800) 468-9716 or (651) 450-4064, E-mail: stocktransfer@norwest.com).
"The acquisition of PairGain enhances ADC's strength in helping communications service providers to win and retain residential and business customers with high-speed DSL connections," said Arun Sobti, senior vice president of ADC and president of ADC's Broadband Access and Transport Group. "From the time we announced the acquisition on February 23, 2000, the employees of both companies have been actively planning the successful integration of the businesses. Now that the closing is completed, we can hit the ground running with the finest talent and expertise in the delivery of broadband, multiservice communications over DSL."
PairGain is a leader in the design, manufacture, marketing and sale of DSL networking systems. Service providers and private network operators worldwide use PairGain's products to deploy DSL-based services such as high-speed Internet, remote LAN access and enterprise LAN extension.
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