British electronics and communications giant General Electric Co. PLC (GEC) has agreed to purchase Fore Systems in a $4.5 billion cash deal, company officials yesterday announced.
Acquisition, a U.S. subsidiary of GEC, will offer $35 per share for Fore Systems by April 30, according to the merger agreement.
The acquisition will enable GEC to enhance its Marconi Communications call center, which will be integrated with Fore System's ATM and IP switching, said George Simpson, GEC's CEO.
GEC plans to merge Acquisition and Fore Systems into a subsidiary, which will offer a wide range of products and technologies that are scaled to suit companies, the company said.
The combined company will provide users with integrated high-speed data, voice and video services, said Thomas J. Gill, president and CEO of Fore Systems.
The Fore Systems acquisition will also provide GEC Group with a stronger U.S. presence and access to the enterprise data networking market, GEC said.
Fore Systems, a global supplier of Internet switching equipment, generated revenue of $632 million in the year ended March 31.
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