ADC Telecommunications to acquire Andrew Corp.

ADC Telecommunications to acquire Andrew Corp.

Communication equipment maker ADC Telecommunications has announced that they are acquiring Andrew Corp.

The deal would be conducted for about $2 billion in stock and would help ADC to boost its wireless technology.

However, market analysts believe that the company is overpaying for this deal and this resulted in ADC’s stock taking a beating at the stock markets.

The deal would see Andrew shareholders getting 0.57 share of ADC for each Andrew share. The offer price is a premium of around 30 percent over the prevailing Andrew’s share prices in the market.

However, the deal is expected to benefit ADC in the long run, as the deal would bolster the combined company’s position amid the convergence of wireless, high-speed Internet, video, data and voice services.