Tyco Electronics, the world’s biggest maker of electronic connectors, agreed to buy ADC Telecommunications Inc. for about $1.25 billion to add broadband connectivity products. Tyco Electronics will pay $12.75 a share, or 44 percent more than Eden Prairie, Minnesota-based ADC’s closing stock price yesterday, according to a statement today.
Tyco, which will pay $12.75 per share in cash, said it believes the acquisition will add 14 cents per share in earnings in the first full year. The companies expect to close the deal by the fourth quarter. The deal, which will begin as a tender offer, is expected to close by the fourth quarter this year. Tyco said it expects the deal to add to its earnings by 14 cents a share, excluding acquisition costs.