Pace proposes to buy router firm 2Wire

CALIFORNIA, USA: Set-top-boxes maker Pace Plc., a British company, announced that it would acquire wireless-router provider 2Wire Inc., a US-based company, for $475 million in cash. 

The consideration includes 2Wire’s balance sheet cash at closing, expected to be approximately $55 million.

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Neil Gaydon, CEO, Pace plc, said: "2Wire’s software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth.”

Pasquale Romano, CEO, 2Wire, said: “The combined customer base, engineering capability and product breadth of Pace and 2Wire make this a compelling transaction for our customers, our employees and our end users globally.”

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2Wire is currently owned by a consortium of strategic and financial investors including Alcatel-Lucent, AT&T, Telmex, Oak Investment Partners, Meritech Capital Partners, and Technology Crossover Ventures.

The transaction is conditional on (amongst other things) the approval of the shareholders of Pace and 2Wire and regulatory approvals. It is anticipated that the transaction will be completed during the fourth quarter of 2010.