ADC Telecom Completes PairGain Purchase

ADC Telecommunications Inc. completed its acquisition Wednesday of PairGain Technologies Inc., the Tustin-based pioneer of high-speed communications devices that became mired in scandal and disappointing financial results in recent years.

PairGain’s operations are scheduled to remain in Tustin, but the company’s name is being dropped. The stock last traded Tuesday on Nasdaq, closing at $34.19, down $2.19.

ADC, a Minneapolis-based maker of communications hardware and software systems, purchased PairGain in a stock swap worth about $1.51 billion. PairGain’s shareholders approved the deal Monday.

PairGain’s problems over the years included a costly relationship with infamous financial advisor Jay Goldinger and an Internet hoax last year that triggered a national criminal investigation.

Analysts said PairGain, founded 12 years ago, had the technology but lacked the size and financial muscle to compete effectively on its own.

When the deal was announced this year, ADC said about 100 of PairGain’s 800 workers would lose their jobs.