Emerson buying Marconi’s power business

St. Louis, MO; Lorain, OH— Emerson Network Power has agreed to acquire the outside plant and power systems business of Marconi Corp. plc for $375 million in cash. Following regulatory review, the transaction is expected to close by Sept. 30, 2004, and is expected to be accretive to Emerson’s fiscal 2005 earnings.

Marconi’s power business provides dc power products, engineering and installation services, and outside plant products to major telecommunication carriers throughout North America. Its revenues for the year ending March 31, 2004, were approximately $380 million.

“The combination of Marconi’s power business with the global engineering and manufacturing resources of Emerson Network Power provides an unmatched competitive advantage for global telecom customers”, says David Farr, Emerson’s CEO. “This expands our North American presence in dc products, solutions and services, and enhances our position as a global leader in dc power systems.”

“The Marconi power business complements our existing global business and offers significant revenue, cost, and technology synergies,” adds Jim Berges, Emerson’s president. “With a global product platform strategy and strong regional configuration capabilities, Emerson can provide leading edge solutions for our customers anywhere. Marconi’s outside plant products, used to support the growing demand for more power and electronics placed outside the central office and closer to the subscriber, expand the product portfolio available to Emerson’s customers.”

Marconi is a global telecommunications equipment, services, and solutions company. The company’s core business is providing innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services.

Emerson Network Power, a business of Emerson, provides power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling. It’s backed by the largest global services organization in the power industry. These Emerson companies serve the needs of telecommunications networks, data centers, health care, and industrial facilities worldwide.

Control Engineering Daily News DeskJim Montague, news editorjmontague@reedbusiness.com

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