ORLAND PARK, Ill. (Dow Jones)--Andrew Corp. (ANDW) acquired privately held Xenicom Ltd. for $11.5 million in cash in a move Andrew expects will give it a competitive advantage as mobile operators upgrade their networks to the third-generation technology standard.
The acquisition, effective immediately, combines Andrew's communication-network hardware products with Xenicom's software for wireless networks.
In a press release Wednesday, Andrew Corp. said the move should add to earnings slightly within the first 12 months.
Xenicom, based in the U.K., had $11 million in sales in the 12 months ended September and counts several major European mobile-phone operators among its clients.
Many cellular network operators are in the process of upgrading existing networks to a new technology standard with greater bandwidth, sometimes called 3G, or third generation, which can better transmit video and data, in addition to voice.
Andrew will fold Xenicom's 55 employees into its Network Solutions unit, which had sales of $184 million in fiscal 2004. The company reported total sales of $1.84 billion for the year ended Sept. 30 and earned about $33 million.
Company Web site: http://www.andrew.com
-Jeremy Herron; Dow Jones Newswires; 201-938-5400; AskNewswires@DowJones.com
(END) Dow Jones Newswires "
Posted to the site on 12th January 2005
Posted to: www.cellular-news.com/story/11669.php