Subject: [NEXTEL-1] Andrew Corp. to Buy Allen in $500M Deal

From: Marcel <[email-masked]>
Date: Tue, 18 Feb 2003 21:18:56 -0500

Andrew Corp. to Buy Allen in $500M Deal

February 18, 2003 5:41pm

ORLANDO PARK, Ill. (AP)  Telecommunications-equipment provider Andrew Corp. said Tuesday
it agreed
to acquire Allen Telecom Inc. for about $500 million in stock.

Shares of Beachwood, Ohio-based Allen
Telecom closed at $13.50, up 27 cents, or 2
percent, on the New York Stock Exchange.
The company is a provider of wireless
infrastructure equipment.

Andrew Corp.'s shares finished the day at
$7.99, down $1.02, or 11 percent, on the
Nasdaq Stock Market.

As part of the agreement, Allen Telecom
stockholders will receive 1.775 shares of newly
issued Andrew stock for each of their shares.
After the transaction is completed, excluding
Allen preferred stock, Andrew shareholders
will own about 64 percent, while Allen
stockholders will own 36 percent of the
combined company.

Allen has about 30.5 million shares outstanding. There are about 98.3 million shares of
Orland Park,
Ill.-based Andrew outstanding.

Andrew projects the acquisition to immediately add to earnings in the first full year of
operations. The
company also expects $40 million in annual cost savings after the combination is
completed, which is
slated for the first half of this year.

Andrew described the merged company as the No. 1 global supplier of coaxial cables, RF
power
amplifiers, terrestrial microwave antennas, network geolocation solutions, and repeaters
and in-building
systems. It is also expected to be the No. 2 global merchant provider of filters and base
station antennas.

The combined company will have nearly 7,000 employees, with pro forma annual revenue of
almost $1.3
billion and research and development spending at $90 million.

Allen Telecom Chairman Philip Colburn and Chief Executive Officer Robert G. Paul will join
Andrew's board,
increasing the number of directors to 12.

(PROFILE
(CO:Andrew Corp; TS:ANDW; IG:CMT;)
(CO:Allen Telecom Inc; TS:ALN; IG:HEQ;)

http://hoovnews.hoovers.com/fp.asp?layout=query_displaynews&q=ANDREW&so=&dc=&ro=&ed=&sd=&s=1&boldtext=ANDREW&sym=&doc_id=NR20030218140.6_7bf90003cc5fcba9

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