Pace seals deal on acquiring US firm

Pace's headquarters at Salts Mill, Saltaire

Pace's headquarters at Salts Mill, Saltaire

First published in Business

Saltaire-based digital technology group Pace plc has completed the £197 million acquisition of US technology business Aurora Networks, which will enable it to expand its operations.

California-based Aurora develops and produces advanced systems for broadband networks. The business will continue to be run by its existing senior management team.

Shares in Pace soared when the company announced plans to acquire Aurora in October and City analysts praised the move. Pace said the deal would widen its operations into providing kit for broadband networks that support the convergence of video, data and voice applications.

Pace chairman Allan Leighton also said the deal would help it achieve its strategic plan and increase profits and earnings per share.

The acquisition would position Pace to support operators’ and consumers’ constant demand for cost effective ever-increasing broadband bandwidth and offer cross-selling opportunities.

Pace described Aurora as a highly profitable and growing business with a blue chip customer base.

and a market leading position, serving 200 customers in 50 countries including all top ten cable operators in the US.

Pace paid Aurora shareholders £197million, including a headline payment £191million along with a further £7.9 million relating to tax benefits to be recovered over the three years following the acquisition.

For the year to March 31 2013, Aurora generated revenues of £134 million.

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