Siemens pays $1.5bn for US DSL Efficient Networks.
ZO will have a field day today. I am bracing for it!!!
Siemens pays $1.5bn for US broadband solutions group
By Ben Hunt
Published: February 22 2001 08:47GMT | Last Updated: February 22 2001 08:59GMT
Siemens, the German engineering and telecoms group, has moved to strengthen its hand in the broadband network market with a $1.5bn agreed offer for Efficient Networks, the US digital subscriber line (DSL) specialist.
Roland Koch, president of Siemens' Information and Network Communications group, said the acquisition was part of the company's drive to broaden its product portfolio and increase profitability.
"With our focus on broadband access solutions, we can now offer our customers comprehensive end-to-end solutions... enabling us to become one of the top three global suppliers of broadband within the next three years," he said in a statement.
Siemens has made a cash offer of $23.50 for Efficient, a 94 per cent premium on Efficient's Wednesday closing price of $12.37-1/2. Efficient made losses before interest, tax and amortisation of $8.6m in the last quarter of calendar 2000, on revenues of $102m.
Efficient, based in Dallas, Texas, develops and supplies DSL solutions to a number of blue chip network service providers and equipment distributors including AOL, Singapore Telecom and Telefonica.
Siemens, which has its AGM in Munich on Thursday, said that investment in broadband technology would weigh on short term earnings and said that it had seen signs of a slowdown in the mobile telephone market.
more from FT.com
Siemens scales back US networking IPO Feb 12, 2001
Full-year sales higher at Siemens Jan 31, 2001
Share split planned by SiemensDec 14, 2000
Siemens to transform into online business Oct 10, 2000
Siemens to float Unisphere Aug 7, 2000
Unisphere considers public offering Sep 7, 1999
Siemens buys US network equipment specialist Mar 19, 1999
Siemens share price
FT.com's IT page |
