Viasystems acquires Marconi's network component and services business

Viasystems acquires Marconi's network component and services business

Keywords: Viasystems, Marconi, Mergers and acquisitions

>Viasystems Group, Inc. and Marconi plc have agreed the sale of Marconi's Network Components & Services business in Europe and China ("NC&S") for US$115 million.

NC&S was acquired by Marconi as part of its acquisition of Reltec Corporation in April 1999. NC&S is a leading European and Chinese manufacturer of enclosures, electro-mechanical assemblies and sub-assemblies designed for the telecommunications marketplace. NC&S' products include integrated enclosures, racks, sub-racks, heat management systems, cable assemblies and customised power supplies. NC&S has facilities in the UK,Italy and China as well as joint venture facilities in Denmark and the USA.

The sale of NC&S is consistent with Marconi's strategy to focus on its core business in high technology transmission and access markets. NC&S will benefit from being part of a leading electronics manufacturing service provider. NC&S will continue to supply certain products to Marconi pursuant to a supply arrangement.

The transaction is subject to regulatory approvals and other customary conditions and is expected to complete prior to March 31, 2000. The consideration is to be paid in cash on completion.