ADC has announced the acquisition of OpenCell, Corp., a manufacturer of digital fiber-fed Distributed Antenna Systems and shared multi-access radio frequency network equipment and a subsidiary of Crown Castle International Corp.
The acquisition allows ADC to incorporate OpenCell's technology into ADC's existing Digivance wireless solutions, which are used by wireless carriers to extend network coverage and accommodate ever-growing capacity demands.
"We believe OpenCell's technology, combined with our existing Digivance radio-over-fiber solution, positions ADC's wireless offering well into the future and furthers the development of our platform for international wireless providers as well," says Robert Switz, CEO of ADC. "This technology accelerates the development of our next-generation Digivance offering, which should enable us to implement key functionality improvements almost immediately to better meet our customers' needs worldwide."
OpenCell, based in Nashua, NH, was founded in 2000. It employs approximately 32 people. OpenCell's digital product family enables the independent operation of multiple frequency-bands and multiple protocols across a single access network. OpenCell has multiple patents covering its ClearControl fully digital product line and distributed RF technologies.
OpenCell has commercially deployed its products with several customers including three of the largest wireless operators in the U.S.
"OpenCell is excited to join ADC and help them continue to lead the advancement of next-generation, digital fiber-optic distributed antenna systems for wireless operators," says David Porte, CEO of OpenCell. "With ADC's strong financial position, solid intellectual property, and global reach of sales into more than 150 countries, our employees will have the resources, distribution and support to make our combined products the best available solutions for wireless carriers worldwide."
ADC acquired OpenCell for $7.25 million in cash along with certain defined liabilities. Before acquired intangibles amortization, ADC expects the acquisition in fiscal 2005 to be around $0.00 dilutive prior to the reverse stock split on May 10, 2005 and around $0.01-$0.02 dilutive after a one-for-seven-reverse stock split on May 10, and accretive to earnings per share starting in fiscal 2006.
ADC's wireless offerings help service providers deliver wireless service in high-demand and hard-to-reach locations. Wireless carriers use ADC's Digivance RF transport products to expand and reinforce the wireless network, boosting network performance without adding cell sites. Digivance functions as the distributed antenna system, allowing wireless operators to enhance their networks by cost-effectively extending coverage and distributing capacity where it is needed, including areas that are often difficult to serve.
ADC is based in Minneapolis, MN. For more information visit www.adc.com.
