ADB acquires Pirelli's broadband business for $30.6 million

Digital TV equipment provider ADB Group has won the hand of Pirelli Broadband Solutions with a $30.6 million bid for the unit. The Switzerland-based company's bid includes about $19.49 million in cash and 400,000 shares of ADB Holdings.

The acquisition agreement, CED reports, also includes $11.1 million of the PBS net cash position, which ups the total price of the deal approximately $41.75 million.

With Pirelli Broadband Solutions, ADB will be able to enhance its digital TV solution set with a line of broadband gateways, IPTV STBs, fixed mobile convergence products and broadband management systems that have been sold primarily to European and Latin American-based service providers.

News of ADB's deal comes after reports emerged that three companies, including ADB, Netgem and German fund Aurelius had put bids on the table to buy the unit, which is in the process of selling off various assets so it can focus its attention on selling tires.

For more:
- CED has this article

Related articles:
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Pirelli wants out of the broadband business
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