Emerson announced that it has reached an agreement to acquire the outside plant and power systems business of Marconi Corp. PLC for $375 million in cash. The transaction is expected to close by the end of Emerson’s fourth fiscal quarter, Sept. 30, 2004, following regulatory review, and is expected to be accretive to fiscal 2005 earnings.
The Marconi power business, based in Lorain, Ohio, is a leading provider of dc power products, engineering and installation services, and outside plant products to major telecommunication carriers throughout North America. Its revenues for the year ending March 31, 2004, were approximately $380 million. This acquisition will allow Emerson to strengthen its presence with the regional Bell companies, inter-exchange carriers, wireless and cable companies in North America—and leverage its global assets.
“The Marconi power business complements our existing global business and offers significant revenue, cost, and technology synergies,” said Jim Berges, president of Emerson. “With a global product platform strategy and strong regional configuration capabilities, Emerson can provide leading edge solutions for our customers anywhere. Marconi’s outside plant products, used to support the growing demand for more power and electronics placed outside the central office and closer to the subscriber, expand the product portfolio available to Emerson’s customers.”
For more information, visit www.emersonnetworkpower.com.
