Platinum buys US Robotics
M&A specialist Platinum Equity has announced its intention to snap up global networking vendor US Robotics for an undisclosed all-cash sum. Platinum claims that the deal will strengthen US Robotics’ position in the market and prepare it for future growth.
US-based mergers and acquisitions (M&A) specialist Platinum Equity has announced its intention to snap up global networking vendor US Robotics for an undisclosed all-cash sum. Platinum claims that the deal will strengthen US Robotics’ position in the market and prepare it for future growth.
“US Robotics has a stellar reputation for quality and innovation, and is one of the premier brand names in the technology industry,” said Tom Gores, chairman and chief executive officer at Platinum Equity. “There is enormous opportunity for growth as the broadband and wireless markets continue to evolve, and we’re eager to help the US Robotics team drive that growth.”
Joseph J. Hartnett, president and chief executive officer of US Robotics, claims 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.
“Platinum’s approach will empower the US Robotics management team to execute its business strategy while providing the resources and support necessary to grow,” Hartnett said. “This positions the company on an exciting platform for expansion and growth in the coming years.”
Jim Levitas, senior vice president of M&A at Platinum Equity, says US Robotics was an attractive investment not only because of its strong brand name and reputation, but also its potential as a platform for add-on acquisitions.
“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,” said Levitas. “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.”
With an installed base of more than 100 million products in more than 80 countries worldwide, US Robotics is one of the largest global vendors of wired and wireless networking solutions.
Platinum Equity has a multibillion-dollar portfolio of companies including business interests in the IT, software, telecoms, logistics and manufacturing sectors. Platinum’s decision to splash the cash for US Robotics suggests exciting times ahead for the networking vendor.