Sunday, August 14, 2005

Platinum Equity to Acquire US Robotics

Platinum Equity will acquire US Robotics in an all-cash transaction. Financial terms were not disclosed.

In addition to dial-up modems, US Robotics offers several lines of wired and wireless consumer networking products, including 802.11 adapters, access points and antennas; and broadband routers switches and adapters.

Joseph J. Hartnett, president and chief executive officer of US Robotics, saod the transaction will allow the company to maintain its independence and entrepreneurial spirit while benefiting from the financial resources and M&A capabilities of Platinum Equity.

"US Robotics has been at the forefront of modem technology for more than three decades, connecting millions of users around the world to the Internet. As new broadband, wireless and security applications evolve, the company is well-positioned to grow. We believe we can accelerate growth by identifying complementary strategic acquisitions," said Jim Levitas, senior vice president of mergers and acquisitions at Platinum Equity

  • In June 2004, U.S. Robotics' management team has acquired a majority stake in the company from Solectron Inc. Terms of the transaction will not be disclosed. 3Com and Accton maintained a minority interest.

  • In June 2000, 3Com spun out U.S. Robotics into a separate company backed by Accton and NatSteel Electronics.

  • In 1997, 3Com acquired U.S. Robotics in a $6.6 billion stock swap -- at the time, the largest networking merger valuation to date.

  • U.S.Robotics was founded in 1976 by three University of Chicago students working out of a Skokie, Illinois garage. The company was named after the "greatest company in the known galaxy" - U.S. Robots and Mechanical Men - from the science fiction novel I, Robot by Isaac Asimov. US Robotics quickly emerged as the world's No. 1 selling modem brand.

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