Power-One Acquisitions Aim to Extend Global Reach
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Power-One in Camarillo, which makes power supplies for electronic equipment, will buy Norway-based Powec AS and a unit of Crane Co. in Stamford, Conn., in an effort to enter the market for telecommunications power supplies in Europe and Asia.
Power-One will pay $70 million in cash and offer 140,340 shares of its stock for Powec AS. It also agreed to assume $8 million of Powec debt. Power-One will pay $14 million for Crane’s telecommunications product line.
Industry officials said the Powec acquisition will give Power-One a foothold in Europe and Asia, where Powec’s customers include Nokia, Ericsson, Vodafone Group, and Hong Kong Telecom Ltd. It will also be able to offer products that run equipment for both large and small telecommunications service providers, said Needham & Co. analyst John McManus.
Crane, an industrial products maker that owns 45% of closely held Powec, has agreed to the sale. Crane said it sold Powec because it was too small a player to compete in the rapidly consolidating telecommunications power supply business.
Power-One expects Powec to have sales of about $70 million in 2000. Power-One had 1999 sales of $205.4 million.
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