The US-based company ADC Telecommunications has obtained High Court approval for the acquisition of Galway technology firm Saville Systems. Under the deal, which was valued at $700 million (€655.124 million) in June, Saville will operate as ADC's European software centre and telecommunications billing software division.
The way is now clear for three former directors of Saville - Mr John Boyle, Mr John Sidgmore and Mr John Blanchard - to be appointed to the ADC board.
The acquisition, which is expected to be completed by Friday, has been structured as a tax-free reorganisation for US federal tax purposes. It will be accounted for as a pooling of interests, with ADC issuing 0.358 of a share of its common stock for each ordinary share of Saville.
Saville, with 1,400 employees worldwide, has achieved rapid growth in the European telecommunications market, developing integrated billing systems, and recorded revenues last year of $168 million. In 1995, the company floated on New York's Nasdaq stock exchange, with Galway as its headquarters.
ADC, based in Minneapolis, is a global supplier of telecommunications voice, video and data systems. It has a staff of 10,100 and annual sales of $1.6 billion.
Welcoming the approval, Mr Oliver Daniels, vice-president of Saville's consulting services for Europe, the Middle East and Africa, said: "Saville Galway will continue to play a strong and vital role in the fundamental growth of our global telecommunications software business."
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