Tyco to Buy Siemens Electronics Unit

Tyco International Ltd., the world’s top maker of electronic components, agreed to buy the electronic switches and relays unit of Siemens for $1.1 billion in cash, adding products to help it build a dominant electronics business. The unit, Siemens EC, has annual sales of about $900 million. Its relays and switches are used in everything from elevators to telecommunications devices--many of which use connectors from Tyco’s AMP unit and wiring from its Raychem unit, both recent purchases. Analysts said Siemens EC would add about 7 cents a share to Tyco’s earnings in the first year. Siemens, Germany’s largest electronics and engineering company, is selling less-profitable divisions to sharpen its competitiveness. Shares of Bermuda-based Tyco closed down 56 cents at $98 on the NYSE.