ST. LOUIS--(BUSINESS WIRE)--Emerson (NYSE: EMR) today announced that it has reached an agreement for Stratos International, Inc. (Nasdaq: STLW) to become part of Emerson Network Power. Emerson will acquire Stratos for $8 per common share in cash (for an aggregate consideration of approximately $85 million, net of acquired cash) pending customary regulatory approvals, approval by Stratos shareholders and satisfaction of other customary conditions. The agreement broadens the scope of Network Power’s offerings and strengthens the position of Emerson Connectivity Solutions in the $35 billion connector industry, particularly in the radio frequency (RF) sector.
“Stratos’ Semflex and Trompeter brands are an excellent complement to our portfolio and expand our product capabilities in the RF connector space. Stratos also diversifies the end market exposure of Emerson’s existing connectivity business, creating a stronger growth platform,” said David N. Farr, Emerson chairman, chief executive officer and president.
“We are excited at the growth and profitability opportunities that will exist for Stratos as part of Emerson,” said Brian G. Mason, president of Emerson Connectivity Solutions. “Combining Stratos’ RF, Microwave, and Optical portfolio with our existing connectivity products will allow Emerson to deliver a broad platform of solutions to our customers.”
The merger agreement provides that Emerson can require a pre-closing cash dividend to be paid to Stratos shareholders. In the event this dividend is paid, the total consideration received by Stratos shareholders, i.e. purchase price plus pre-closing dividend, would still total $8 per share.
About Emerson Network Power
Emerson Network Power, an Emerson business, serves the needs of telecommunications networks, data centers, health care and industrial facilities worldwide with a full spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling – all backed by the largest global services organization in the power industry. Sales in fiscal 2006 were $4.4 billion. For more information, visit www.emersonnetworkpower.com.
Emerson (NYSE: EMR), based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2006 were $20.1 billion. For more information, visit www.gotoemerson.com.
About Stratos International
Stratos International, Inc. is a leading designer, developer and manufacturer of RF and microwave, as well as optical subsystems, components and interconnect products used in telecom, enterprise, military and video markets. Stratos has a rich history of optical and mechanical packaging expertise and has been a pioneer in developing several optical devices using innovative form-factors for telecom, datacom and harsh environment applications. This expertise, coupled with several strategic acquisitions, has allowed Stratos to amass a broad range of products and build a strong IP portfolio of more than 150 US patents issued and pending. Stratos currently serves more than 1,300 active customers, primarily in the telecom/datacom, military/aerospace and video markets.