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Pace to acquire Aurora Networks for USD 310 million
2013-10-23 13:24:00| Telecompaper Headlines
(Telecompaper) Set-top box maker Pace is expanding into the network equipment market with an agreement to buy Aurora Networks for USD 310 million cash. California-based Aurora develops and manufactures optical transport and access network equipment for delivery of video, data and voice services over fibre-based networks. In the year to 31 March, it generated revenues of USD 217 million and EBITDA of USD 30 million. The company counts over 200 customers in 50 countries, including all of the top 10 cable operators in the US. Pace said the deal will add significantly to earnings and support its current margin and leverage targets. It will maintain the Aurora brand and management and operate the company as a separate unit. Pace secured a five-year loan to finance the takeover, and also refinanced its existing credit facilities with a new USD 150 million revolver. Pending regulatory and shareholder approval, the deal is expected to close around year-end.
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Category:Telecommunications