MINNEAPOLIS-ADC Telecommunications Inc. announced it acquired Saville Systems plc, a worldwide provider of customer-care and billing software solutions.
Under terms of the agreement, each ordinary share of Saville will be exchanged for .358 of an ADC share. At ADC’s closing share price of $50.13 on June 18, the transaction is valued at approximately $700 million.
The acquisition is the second in recent months where a billing-software entity was acquired by a telecommunications equipment maker. Lucent Technologies Inc. paid $1.5 billion for one of Saville’s rivals, Kenan Systems Corp., earlier this year.
The proposed transaction is expected to be completed in ADC’s fiscal fourth quarter.
ADC Telecommunications also said its board of directors voted to terminate its current stock repurchase program announced in April 1998. Of the 6.7 million shares authorized under the program, ADC said it has repurchased approximately 1 million prior to its termination.
The board ended the program to provide ADC with more flexibility in pursuing strategic acquisitions and growing its business, said the company.
