MINNEAPOLIS, July 22 -- ADC announced today it will acquire Fiber Optic Network Solutions (Fons) Corp., a manufacturer of high-performance passive optical components and fiber optic cable packaging, distribution and connectivity products, for $172 million in cash.
ADC said the acquisition will enhance its existing line of fiber-to-the-x (FTTX) products. Fons, a private company financed by two rounds of venture funding and owned by Oak Investment Partners, Morgenthaler Partners and its employees, has approximately 60 employees worldwide and estimated 2005 sales of $95 million. In addition to its corporate headquarters in Marlboro, Mass., Fons has partners and outsourcing relationships in Mexico, Japan and China.
"Fons is a high-quality connectivity business that fits well with our strategy for capturing the strong growth potential of the FTTX market, which is in the early stages of its growth curve," said Robert E. Switz, president and CEO of ADC. "This acquisition more than doubles our FTTX outside plant business to greater than 10 percent of total ADC sales."
Michael J. Noonan, president and CEO of Fons, will become vice president of business development at ADC's Global Connectivity Solutions business.
The purchase amount includes a retention bonus pool that will be paid to most of Fons' current employees. The transaction is expected to close during the next 30 to 90 days, subject to regulatory approval and customary closing conditions.
For more information, visit: www.adc.com