ADC to be sold for $1.25B
ADC Telecommunications Inc. has been sold to Tyco Electronics in a $1.25 billion deal, the companies announced Tuesday.
Tyco will pay $12.75 per share for Eden Prairie-based ADC, which makes technology for the telecommunications industry.
The transaction is expected to close in the fourth quarter.
Tyco, based in Switzerland, recorded more than $10 billion in revenue last year. The company, formerly part of Tyco International, makes electrical components for several industries, including networking equipment used by telecom companies.
The deal will allow Tyco to expand its portfolio of wireless connectivity products, which are used to build mobile networks, the company said in a news release. Tyco (NYSE: TEL) also will incorporate ADC's U.S. professional services business into its operations payday loan lenders.
The acquisition will add up to 14 cents per share to Tyco's full-year earnings, the company said.
ADC ranked No. 32 on the Minneapolis/St. Paul Business Journal's most recent list of the largest public companies in the state. The firm has 9,050 employees in Minnesota.
An ADC spokesperson couldn't be reached for comment on how the deal will affect jobs in the Twin Cities.
The company has a long history in the Twin Cities. It grew rapidly during the tech boom of the 1990s — becoming a $3 billion company by 2000. It cut its staff sharply after the dot-com bubble burst.