ADC Telecommunications Seeks China Entry via Acquisition

ADC Telecommunications (ADCT) which provides communications network infrastructure solutions and services held its quarterly earnings conference call with analysts earlier today. The following is a short excerpt:

Bob Switz - CEO

Our M&A thoughts are consistent with what we've shared with you in the past. We are not deviating from the core strategy. The areas that were of interest to us remain of interest, maybe with one update. And I know I've mentioned this, but I’m not sure how broadly. But as we look at M&A geography, is an important area as well. And given our desire to be competitive and effective in emerging markets, particularly China, we clearly have an interest if we could find the right partner of making an appropriate acquisition in China to jumpstart our participation in that market, give us access to channel, to customers, as well as a reasonably scaled base to leverage from in terms of highly cost competitive products, not only for the Chinese market, for other emerging markets as well, such as India, eastern Europe, etcetera. So, from a geography standpoint, that area is of interest. Aside from that, things around the core strategy of outside plant, fiber, as well as enterprise solutions in wireless remain attractive to us. And on the financial side, of course, nothing has changed. We do expect what we do to be accretive, preferably within the first 12 months of following acquisition.

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