Pace completes international business negotiations with US firm
UK company set to buy 2Wire for £307m
UK set-top box developer Pace has completed international
business negotiations with US broadband firm 2Wire.
The British firm is set to acquire 2Wire for $475 million (£307
million) as it looks to expand into the internet TV market.
Neil Gaydon, chief executive of Pace, claimed the deal would
help the business take advantage of the growing demand for
high-speed broadband in the US.
"We have built a strong position in the US with cable and
satellite operators and 2Wire, with its expertise in the broadband
residential gateway market, will enable us to address a full range
of US operator requirements," he said.
Following the announcement of the deal, Pace shares rose by
eight per cent to a near-five month high.
Having usurped Motorola in May, Pace is now the world's largest
set-top box maker, supplying the technology to BSkyB, Canal+, and
Comcast.
A consortium fronted by Alcatel-Lucent, Telmex and Oak
Investment Partners currently owns 2Wire.