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Netgear to buy Westell Technologies' CNS division
[March 18, 2011]

Netgear to buy Westell Technologies' CNS division


(Associated Press Via Acquire Media NewsEdge) SAN JOSE, Calif. -- Netgear Inc. said Friday it has agreed to buy the customer networking solutions division of Westell Technologies Inc. for $33.5 million.

The business to be acquired provides high-speed internet networking products to telephone companies, allowing voice, data, video and other services to stream over existing copper and fiber optic telephone lines.

Westell will retain certain customer relationships and its HomeCloud product line. Otherwise, the deal includes substantially all assets of the CNS division. The business generated revenue of $39.5 million during 2010.

The acquisition is subject to various customary closing conditions, including the execution of certain third-party consents, and is currently expected to close in Netgear's second fiscal quarter. Netgear will fund the deal with cash out of existing reserves.



Netgear anticipates integration of the business to take about three months following the closing. More detailed information will be provided when Netgear reports its quarterly results next month.

Adding the business allows Netgear to accelerate its service provider revenue growth and strengthen market position among North America telecommunications operators, CEO Patrick Lo said in a statement.


Westell Technologies, based in Aurora, Ill., designs, distributes, markets and services broadband equipment, digital transmission, remote monitoring, power distribution and demarcation products used by telephone companies and other telecommunications service providers. Its shares rose 42 cents, or 14.4 percent, to $3.34 in morning trading.

San Jose, Calif.-based Netgear makes home networking, storage and digital media products to connect people with the Internet and their content and devices. Shares rose 10 cents to $30.61.

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