Technitrol to Acquire Excelsus Technologies
biz.yahoo.com
PHILADELPHIA--(BUSINESS WIRE)--May 23, 2001--Technitrol, Inc. (NYSE:TNL - news) announced it has signed a definitive agreement to acquire all of the capital stock of Excelsus Technologies, Inc., a producer of customer-premises digital subscriber line (DSL) filters and other broadband accessories.
The purchase price for Excelsus will be approximately $87.5 million in cash. The transaction, subject to normal regulatory review and other customary closing conditions, is scheduled to be completed in early July of 2001.
Headquartered in Carlsbad, California with operations in Hong Kong, Excelsus recorded revenues of approximately $40 million in 2000, representing a leading share of the end-user DSL microfilter market. Its operations will become part of Pulse within Technitrol's Electronic Components Segment. Excelsus founder Fred Kiko will join Pulse as Chief Technical Officer for Pulse's end-user DSL product family.
``We believe the near-term DSL growth opportunity has shifted from the network to the end-user market, where demand for high-speed Internet connections continues to grow,'' said Technitrol Chairman and Chief Executive Officer James M. Papada, III. ``Each DSL telephone line requires an average of three to four filters for signal conditioning where analog phones and faxes connect. Based on industry studies, we believe the DSL market will grow to about 65 million users by 2005.''
Excelsus has the broadest line of DSL filters in the industry and has demonstrated responsiveness and flexibility in meeting the needs of the DSL markets both in the US and internationally. Customers include Regional Bell Operating Companies, Internet Service Providers and equipment manufacturers.
``These products can be packaged as self-installation kits, which will speed up DSL service provisioning while reducing deployment costs for the local exchange carriers,'' Papada said. ``Fred Kiko and his team had the vision to recognize this business opportunity, the technological skill to address it and the carrier relationships to capture the number-one market position.
``Excelsus is an excellent fit with Pulse's existing product lines and capabilities,'' Papada said. ``Its operations are very well-run, and its production requirements are well within Pulse's competencies. We are especially pleased to have Fred Kiko and his team as our partners. Fred's capabilities in designing a superior, manufacturable component for end-user DSL applications are well known and well recognized in the industry. We expect earnings accretion from this acquisition from the outset.''
Houlihan Lokey Howard & Zukin, an investment banking firm headquartered in Los Angeles, represented Excelsus in the transaction and will also be rendering a fairness opinion to its board of directors.
Based in Philadelphia, Technitrol is a worldwide producer of electronic components, electrical contacts and assemblies and other precision-engineered parts and materials for manufacturers of networking, broadband/Internet access, telecommunications and computer equipment, electrical switching devices, and other products. For more information, visit Technitrol's Web site at technitrol.com. |
