Summary
TE Connectivity plc (TEL), previously Tyco Electronics Ltd., announced on December 9, 2010, the successful completion of its acquisition of ADC Telecommunications, Inc. (ADC). The tender offer for ADC shares, which began on July 12, 2010, expired on December 8, 2010, with approximately 86.80% of ADC's outstanding common shares validly tendered and accepted for payment at $12.75 per share in cash. Following the tender offer, TE Connectivity exercised its top-up option to acquire additional ADC shares, bringing its total ownership to over 90%, which then allowed for a short-form merger to be completed on December 9, 2010. This acquisition significantly expands TE Connectivity's market presence. The aggregate consideration for the acquisition, excluding the top-up shares, amounts to approximately $1.26 billion. The completion of this merger solidifies TE Connectivity's ownership of ADC, integrating its operations and product lines into TE Connectivity's broader portfolio. Investors should note the substantial cash outlay for this strategic acquisition, which is expected to contribute to the company's future growth and market position in the telecommunications sector.
Key Highlights
- 1TE Connectivity plc (TEL) completed its acquisition of ADC Telecommunications, Inc. (ADC) on December 9, 2010.
- 2The tender offer for ADC shares successfully acquired approximately 86.80% of outstanding shares.
- 3The purchase price for ADC shares was $12.75 per share in cash.
- 4TE Connectivity exercised a top-up option to acquire additional ADC shares, increasing its ownership to over 90%.
- 5A short-form merger was completed following the top-up option exercise, with ADC becoming an indirect wholly-owned subsidiary.
- 6The total cash consideration for the acquisition was approximately $1.26 billion (excluding top-up shares).
- 7The acquisition was structured through a merger agreement entered into on July 12, 2010.