Lineage Power Completes Acquisition of PECO II, Inc.
Lineage Power Holdings, Inc., a Gores Group, announced that it has completed the acquisition of PECO II, Inc. Under the terms of the merger agreement approved by shareholders, Lineage has acquired all of the outstanding shares of PECO II, based on a price of $5.86 per share in cash.
According to Lineage, together, the combined product portfolios and nationwide support infrastructure creates one of the largest and most capable professional services organizations for telecom power in North America. PECO II’s high standards for customer responsiveness, service quality and easy-to-use energy systems are strengthened with Lineage’s global scale and broad solution set. In addition, the comprehensive, US-based engineering, product qualification, and support services address end-to-end power requirements for broadband, wireless and wireline service providers.
"Wireless subscriber network usage for Mobile Internet applications is growing 30% a year, driving service providers to invest billions to deploy an order of magnitude of more cell sites that require our unique power solutions," said Craig Witsoe, CEO of Lineage Power. "Our immediate priority is to engage with our customers to develop a joint technology roadmap that delivers leading products, rapid availability and the industry’s best customer experience. We’re also developing cost-effective modules for the PECO II energy systems installed base that lower utility and cooling expenses with Lineage Total Efficiency™ (TE) technology to extend the product’s useful lifecycle and ensure no power plant is left behind."
"The PECO II team is excited to be joining Lineage Power," said John G. Heindel, Chairman, President, and Chief Executive Officer of PECO II. "Our extensive technology capabilities and shared focus on customer service create a compelling offering in this growing industry."
The combined telecom power products portfolio for Mobile Switching Centers (MSC); outside plant (OSP) optical backhaul networks; and cell sites accelerates deployment of 4G/LTE and 3G network upgrades, while providing centralized visibility and control of the telecom power infrastructure for customers such as AT&T and Verizon.
The acquisition of PECO II is the second acquisition made by Lineage since it was acquired by The Gores Group from Tyco Electronics in 2007. The move is part of the continuing growth plan devised by The Gores Group to provide Lineage with financial and operational support to expand its geographic capabilities and products portfolio through acquisitions. Lineage Power previously acquired Cherokee International in September 2008.
"The Gores Group is delivering on our promise to build the best performing business in the industry," said Tim Meyer, Managing Director of The Gores Group and Lineage chairman of the board. "The PECO II and Cherokee acquisitions further illustrate our strategy of partnering closely with management to restructure and transform companies that outperform their peer group and deliver excellent value for customers."