Pace Completes $323 Mln Acquisition Of Aurora Networks; Stock Rises

Shares of Pace Plc (PIC.L) increased around 4 percent in the morning trade in London after the developer of technologies and products for PayTV and broadband service providers confirmed that it has completed the acquisition of Aurora Networks, Inc.

On the deal closure, Pace paid Aurora shareholders $323 million. The consideration comprised a headline consideration of $310 million on a debt and cash free basis as well as a further $13 million relating to tax benefits to be recovered over the three years post acquisition.

The company noted that the deal consideration is subject to post-completion cash and working capital adjustments.

It was on October 23 that Pace said it signed a conditional agreement to acquire Aurora, a developer and manufacturer of advanced, next-generation Optical Transport and Access Network solutions for broadband networks. Aurora generated revenues of $217 million and EBITDA of $30 million for the year 2013.

Pace then had said that the deal would be significantly accretive to earnings in 2014 and accelerate the company towards improved profitability target of 9 percent return on sales in 2015.

Pace added today that a five year term loan for $310 million to finance the acquisition of Aurora Networks plus a new five year $150 million revolving credit facility is now in place.

The company said it will make a 2013 full year trading update on Thursday, January 9.

Separately, Pace announced that Chief Executive Officer Mike Pulli has joined the Board of Itron, Inc as a Non-executive Director with effect from January 1.

In London, Pace shares are currently trading at 333.66 pence, up 13.36 pence or 4.17 percent.

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