Century Man Communication offers communication distribution frames, related accessories, wireless and other network products and recorded sales of approximately $40m in the 12 months ending September 30, 2007. Its clients include Chinese telecom service providers and operators such as China Mobile, China Telecom, China Netcom, China Unicom and China Railway, as well as original equipment manufacturers such as ZTE and UTStarcom.
According to ADC, the acquisition will enhance its growth potential in China and other developing markets, with the addition of low priced product offerings. The deal will also add additional low-cost manufacturing facilities for the company.
The strategic value of this acquisition is created by accelerating ADC’s growth potential in the China connectivity market, as well as providing ADC with additional products designed to meet the needs of developing countries in the other strong growth markets outside of China, said Robert Switz, president and chief executive at ADC.
After the close of the acquisition, Yuan Dan will become the general manager of ADC Century Man Communication China.
According to ADC, Century Man is estimated to hold the second rank in the Chinese distribution frame connectivity infrastructure market, and this market is expected to grow at a CAGR of 8% per year through 2010. 3G and fiber-to-the x (FTTX) deployments in China are expected to increase spending on hybrid and optical distribution frames at about 30% compounded annually through 2010.
Last month, ADC acquired wireless coverage and capacity solutions company LGC Wireless for approximately $169m. LGC specializes in wireless coverage and capacity solutions for carriers and the enterprise.
Source: ComputerWire daily updates
