ADC to Buy Start-Up Broadband Access

ADC Telecommunications Inc., a maker of telephone equipment, said it will buy Broadband Access Systems, a start-up developer of high-speed data and voice delivery systems, for stock valued at $2.25 billion. ADC said the acquisition of privately held Broadband Access would ready it for a surge in demand for high-speed Internet access services over cable television and digital subscriber line networks. DSL services allow high-speed Web access over copper phone lines. ADC said that Broadband Access’ technology also will work well in delivering Internet protocol-based services over ADC’s DSL and wireless equipment. The purchase is part of ADC’s strategy of expanding its wireless and global expansion through acquisitions. With the purchase of Westborough, Mass.-basd Broadband Access, ADC will have spent almost $5 billion on acquisitions this year, including $1.6 billion for rival PairGain Technologies. Shares of Minneapolis-based ADC fell $2.44 to close at $32.44 on Nasdaq.