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Global
News
March
3, 2003
Andrew
to acquire Allen Telecom
UNITED
STATES -- Andrew Corp. and Allen Telecom Inc. have recently
signed a definitive agreement under which Andrew will
acquire the latter in a stock-to-stock transaction valued
at approximately $500 million. This combination establishes
Andrew as the pre-eminent global wireless infrastructure
subsystems supplier with capabilities to provide total
customer solutions, including virtually the entire base
station RF footprint.
Founded
in 1937, Andrew Corp., is a leading global supplier
of communications systems equipment, solutions and services.
Its major markets are wireless communications -- including
cellular, personal communications services and land
mobile radio -- broadcasting, government, and broadband
wireless and fixed telecommunications networks. An S&P
500 company, its common stock trades on the NASDAQ under
the symbol: ANDW. It has over 5,000 dedicated employees
spread across the globe over 70 locations providing
support to all of its customers.
Andrew's
advantage is the premium products backed by a team of
professionals dedicated to excellence. Its "Flash"
trademark can be seen in every corner of the world --
on broadcasting towers and microwave antennas, HELIAX
and RADIAX cables, communications and computer networking
equipment. A benchmark of quality, Andrew's mark is
a symbol of commitment to customer satisfaction. It
has good relationships with every major global OEM and
operator, a product portfolio of unrivaled breadth,
and local sales, manufacturing, and distribution presence
in every major region of the world. In addition, it
supports CDMA, TDMA and GSM standards, as well as the
emerging 3G technologies.
Allen
Telecom Inc. is a leading supplier of wireless equipment
for the global telecommunications infrastructure market.
FOREM supplies sophisticated filters, duplexers, combiners,
amplifiers and microwave radios to an array of OEM customers.
MIKOM focuses on providing repeaters, in-building systems
and other products that enhance the coverage and capacity
of a wireless system. Tekmar Sistemi provides integrated
low power fiber-optic and cable distributed antenna
systems for indoor coverage systems. Decibel Products
and Antenna Specialists manufacture land-based and mobile
antennas in frequency bands covering all of the traditional
wireless networks. Grayson Wireless supplies measurement
and signal processing systems for testing the performance
of a wireless network, network-based wireless caller
geo-location systems for E911 and value-added services.
Comsearch offers program management, network planning,
engineering development and installation of wireless
networks worldwide.
The
combined company will be the number one global supplier
of coaxial cables, RF power amplifiers, terrestrial
microwave antennas, network geo-location solutions and
repeaters and in-building systems; and the number two
global merchant provider of filters and base station
antennas. Further, it will deliver an integrated offering
of active components -- filters and RF power amplifiers
-- to better meet the evolving performance and cost-efficiency
requirements of customers. Andrew is now uniquely positioned
in the telecom industry to generate accelerated near
term growth from its expanded presence in these key
market segments and capture a greater portion of the
$20 billion wireless infrastructure subsystems market.
Following
completion of the transaction, the combined company
will have nearly 7,000 employees, pro forma annual revenues
of approximately $1.3 billion, and an annual R&D
spending of $90 million. It will also have a strong
balance sheet and enhanced financial flexibility.
Ralph
Faison, CEO and president of Andrew, said: "This
is a landmark transaction that fundamentally redefines
the dynamics of our industry. It extends Andrew's leadership
in the wireless infrastructure subsystems market and
positions us to lead the industry through its consolidation
phase. The addition of Allen's strong presence in the
attractive areas of filters, base station antennas,
in-building systems and geo-location also diversifies
and expands our product offerings, opening up new revenue
streams and enabling us to provide customers with the
most comprehensive product portfolio in the industry.
We will also benefit greatly from the insights and experience
of the talented Allen professionals joining our team."
Robert
G. Paul, President and CEO of Allen, said: "The
strategic vision of this transaction is compelling.
By joining forces with Andrew, we will gain access to
new customers, who will benefit from our ability to
offer them the most comprehensive solutions in the industry.
Our shareholders receive a premium over the current
value of their shares and the opportunity to benefit
from the considerable upside we see for the combined
company by virtue of their continuing investment."
Contact:
Andrew Corp.
Tel: +1-212-521-4800
Web: www.andrew.com
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