Pace in £300m deal for 2Wire
PACE, the world’s largest set-top box maker, has agreed to buy US broadband technology firm 2Wire for £306.6m to broaden its customer base beyond cable and satellite into the Internet TV market.
The British company, which overtook to claim the top spot in May, said 2Wire had an established relationship with North American telecoms providers including AT&T, and the deal would catapult it to number three in the global telecommunications home-hub market.
Pace chief executive Neil Gaydon said: “We have built a strong position in the U.S. with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements.”
2Wire is owned by a consortium including Alcatel-Lucent, AT&T, Telmex and Oak Investment Partners.
Yorkshire-based Pace, which makes set-top boxes for BSkyB Canal+ and Comcast also reported a 46 per cent rise in first-half pre-tax profit.
The company posted pre-tax profit of £45.4m on 21 per cent higher revenue of £635.2m in the six months to the end of June.
It said given its strong market position and ongoing demand for digital television, it should deliver mid-single digit revenue growth over the medium term.