C-Cor.net to buy plants from ADC Telecommunications
Tuesday, July 10, 2001
STATE COLLEGE, PA. -- C-Cor.net Corp., a cable-TV equipment maker, agreed to buy three plants from ADC Telecommunications Inc. for $32 million.
C-Cor.net will acquire plants in Meriden, Conn.; Klagenfurt, Austria, and Buenos Aires, Argentina.
C-Cor.net, based in State College, Pa., estimated that the deal will add $15 million in quarterly revenue and 2 to 3 cents a share to quarterly earnings six months after
the agreement is completed in August. The company expects to incur $6 million to $8 million in expenses for combining product lines.
ADC, the Minnetonka-based maker of telecommunications equipment, is selling the plants to focus on making gear for businesses such as fast Internet access and fiber
optics. About 350 ADC employees will join C-Cor.net, most of them in Meriden.
Shares of C-Cor.net rose 47 cents, or 4.3 percent, to $11.39 on Monday. The company's shares have fallen 59 percent in the past year. ADC shares, which have dropped
83 cents in the past year, fell 1 cent to $6.35.
-- Bloomberg News
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