Shares of ADC Telecommunications Inc. (ADCT) traded notably higher on Monday as word spread that it has sold its GSM base station and switching assets, and some intellectual property, to a vendor in Ireland.
ADC’s stock price had risen 6.44 percent to $6.61 by 1:18 p.m. Eastern.
ADC wouldn’t reveal the details of the transaction to Altobridge, which supplies equipment to mobile network operators. However, Minnesota-based ADC did tell the Minneapolis/St. Paul Business Journal the GSM portfolio represents about a small portion of the company’s overall revenue.
“We’re still very committed to the wireless market,” an ADC spokesman told the Business Journal.
In essence, the sale frees ADC to focus on in-building and outdoor wireless products that require more capacity thanks to soaring 3G and 4G data demands. At the same time, Altobridge plans to use the acquired ADC goods to build its managed services division, a strategy intended to help lower its customers’ costs. It also will be able to help its operator users provide wireless services to remote locations such as mining or logging operations or cruise ships.
Altobridge said it will continue to support ADC’s GSM customers, even those in the pipeline. Further, it’s hiring about 70 ADC workers. ADC employs approximately 9,500 people worldwide and distributes many of its products through indirect channels.
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August 17 2018 @ 17:35:06 UTC