Regent Logo

Mergers and Acquistions News

Categories: Hardware

July 27th 2010, 14:11PM

Yorkshire-based Pace, a set-top box developer, will buy 2Wire, a provider of residential gateways and software for the broadband market, for $475 million (£308 million).

Pace's acquisition is part of an expansion strategy aimed at strengthening its place in the US cable and satellite markets. It will also attempt to break into the US telecoms market.

The developer feels 2Wire's software and gateway expertise will work alongside its strategy.

Pace is already the largest set-top box company in the world and after the acquisition will be the top provider of residential gateway services in America.

Neil Gaydon, chief executive officer of Pace, said: "This acquisition will strengthen our Americas business, extending Pace's US market coverage with entry into the tier one telco market. We have built a strong position in the US 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."

According to the Financial Times, analysts have forecast Pace to achieve pre-tax profits of around £97 million in 2010.
 ADNFCR-1833-ID-800006328-ADNFCR

 

Related News