Corning Inc. will acquire MobileAccess Networks Inc., a provider of wireless network technology, from a consortium of investors including Viola Group, Pitango Venture Capital, Poalim Ventures, Eurofund L.P., DeA Capital S.p.A., HarbourVest Partners, Ziegler Meditech Equity Partners and CDB Web Tech. The deal is expected to close during the first quarter of this year.
Corning Incorporated (NYSE: GLW) announced today that it has signed an agreement to acquire MobileAccess, a leading provider of wireless network solutions. The terms of the agreement are not being disclosed. Pending regulatory approval, the acquisition is expected to be completed by the end of the first quarter in 2011.
With headquarters in Vienna, Va. and a technology center in Tel Aviv, Israel, MobileAccess provides distributed antenna system (DAS) solutions for flexible wireless coverage in the rapidly growing wireless market. Upon closing, MobileAccess will be integrated into Corning Cable Systems, headquartered in Hickory, N.C., and part of Corning’s telecommunications business segment.
The acquisition will enable Corning to accelerate a key area of focus within the company’s telecommunications growth strategy: the DAS wireless segment. With this acquisition, Corning can expand its line of innovative telecommunications solutions beyond its industry-leading Fiber to the Home (FTTH) and Enterprise Optical solutions. MobileAccess provides a strong portfolio of innovative DAS solutions and established wireless technical expertise in radio frequency design, engineering, and software development. These capabilities complement Corning’s DAS development efforts and will enable the company to extend its leadership as a connectivity solutions company.
The telecommunications industry— and the wireless network segment in particular—, is experiencing significant growth. The explosive increase in smartphones and other bandwidth-hungry wireless devices has triggered tremendous demand for greater wireless network coverage and capacity. Network operators are responding to their wireless customer needs by investing heavily in 3G and 4G wireless infrastructure, with the DAS segment being a key area of deployment. Optical solutions like those Corning provides are rapidly penetrating this space. With this acquisition, Corning will deliver a portfolio of differentiated DAS solutions and extend its leadership in this growing market.
“We are very excited about the opportunity to expand Corning’s presence in the rapidly growing DAS wireless segment,” said Clark S. Kinlin, president and chief executive officer, Corning Cable Systems. “MobileAccess has a proven history of delivering customer-driven innovative solutions with superior customer service. We look forward to building a bright future in wireless networks when the talented team from MobileAccess joins us.”
“Working with Corning, a world-leading optical connectivity company, provides MobileAccess with a great opportunity to extend our strong position in the growing wireless market. The closely aligned strategies and values of the two companies should ensure that our customers will continue to receive industry-leading, innovative wireless solutions and superior customer service,” said Ron Kaiser, chief executive officer, MobileAccess.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning’s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed in Corning’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.
MobileAccess is a global provider of reliable wireless coverage solutions for all indoor wireless environments. MobileAccess’ solutions platform delivers wireless connectivity in enterprises of every size, and has become the industry standard in the healthcare, hospitality and higher education markets. MobileAccess’ legacy of innovation and proven architecture set the bar for indoor wireless peak performance, ensuring customers can meet current wireless demands as well as easily expand with future applications and services. MobileAccess has broad experience deploying its wireless connectivity solutions across vertical markets and around the world, including recent deployments in renowned international facilities. MobileAccess is headquartered in Vienna, Virginia, and has a technology center in the Middle East. For more information, please visit: www.mobileaccess.com.