Pace Acquires Aurora Networks for US$ 310 Mil.
Saltaire, UK, Oct. 23, 2013 — Set-top boxes developer Pace plc is acquiring optical transport and access network solutions provider Aurora Networks for US$ 310 million in cash.
For the year ended 31 March 2013, Aurora generated revenues of US$ 217 million and EBITDA of US$ 30 million. With the purchase, Pace is hopeful it will be able to improve its chances of reaching profitability target of 9 percent return on sales in 2015.
The purchase also positions Pace to support operators' and consumers' constant demand for cost effective delivery of ever increasing bandwidth, widening its business beyond that of customer premises equipment.
In addition to the US$ 310 million cash, Pace will also pay another US$ 13 million, payable on closing the deal, which will come from tax benefits to be recovered over the three years after the acquisition. The acquisition is, however, conditional upon the satisfaction of necessary regulatory and other conditions.
Pace Chairman Allan Leighton said the acquisition of Aurora represents an important evolution in this process and enhances our strategy to grow a broader platform across Hardware, Software and Services.
“Acquiring Aurora will allow Pace to expand beyond our core business and build deeper and more embedded relationships with our customers, which the company believes will strengthen Pace's position as a market leading solutions provider for the PayTV and broadband industries."
Mike Pulli, CEO of Pace, acknowledged Aurora’s pivotal role in optical transport and access network solutions and its strong and seasoned team of talented and innovative cable industry professionals, adding that the transaction will further strengthen their relationships with customers.
“The combined business will have strong financials and a broad market leading portfolio that will provide excellent opportunities for our customers, employees and shareholders alike,” he said.
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