ADC Telecom CEO says buying spree to slow
NEW YORK, Sept 20 (Reuters) - Telecommunications equipment maker ADC Telecommunications Inc. (NASDAQ:ADCT) likely will slow down an acquisitions spree that has hit almost $5 billion this year, Chairman and Chief Executive William Cadogan said on Wednesday.
In its latest purchase, ADC said earlier Wednesday it would buy privately held Broadband Access Systems Inc. (BAS), a start-up developer of high-speed data and voice delivery systems, in a $2.25 billion stock deal. The acquisition is aimed at completing ADC's high-speed Internet portfolio.
"When you see an opportunity like BAS, you do have to snap them up while the opportunity is there," Cadogan, who is also ADC's president, told Reuters. "But going forward, I would expect we would acquire at a much lower rate."
Minneapolis-based ADC's strategy has been to fuel its wireless and global expansion through acquisitions. With the Broadband Access deal, ADC will have spent almost $5 billion on acquisitions this year alone, including $1.6 billion for rival PairGain Technologies.
Cadogan said the company was ready to carry out its strategy for its broadband portfolio. Broadband services allow high-speed Internet connections.
"I think we're fast approaching critical mass in the broadband market, and I think the time has really come now to execute the strategy," he said.
ADC shares were off $2-3/4 at $32-1/8 in afternoon trading. |
