Marconi sells US access assets

Marconi Corporation is to sell its North American Access business to Advanced Fibre Communications for $240 million (approximately £135 million) in cash.

Marconi Corporation is to sell its North American Access (NAA) business to Advanced Fibre Communications for $240 million (approximately £135 million) in cash.

North American Access provides fibre-access solutions to regional Bell operating companies and large North American incumbent local exchange carriers.

The transaction encompasses NAA’s Bedford, TX facility and its employees.

The NAA business recorded sales of approximately £55 million and an operating profit, before goodwill amortisation and exceptional items, of approximately £3 million, in the six months ended 30 September 2003.

Completion of the transaction – which is subject to regulatory review and other customary closing conditions – is expected to occur in the first quarter of 2004.