ADC sell off selected cable assets for $32 million

ADC has announced the sale of certain cable assets to C-COR.net in a deal worth approximately US$32 million.

ADC, a global supplier of fibre optics, network equipment, software and integration services for broadband, multiservice networks, today announced the sale of certain cable assets to C-COR.net, a global provider of broadband technology and services.

Assets included in the sale include the Optiworx family of transport products for hybrid fibre / coax applications and the DV 6000/6400 line of uncompressed digital video products.

The transaction is valued at approximately $32 million and includes the assumption of certain liabilities, including ADC’s ongoing warranty and service obligations for these product lines.

The sale is expected to close by late August and includes operations in North America, South America and Europe.

According to a statement, ADC plans to use the proceeds from the sale primarily to remove outstanding long-term debt.

The products sold to C-COR.net include headend and outside plant node equipment used by cable system operators to deliver analogue and integrated digital services over their networks.

In connection with the sale, approximately 350 ADC employees will become employees of C-COR.net. The majority of these employees are located at ADC’s plant in Meriden, USA.

The sale of the Optiworx and DV product lines and related cable infrastructure products are said to reflect ADC’s plans to narrow its focus to strategic, long-term growth areas in IP cable, DSL, optics and software supported by its core businesses in broadband connectivity products and systems integration services.

On the web