Corning on Monday announced that it has largely wrapped up the acquisition of 3M Company’s communications market division, expanding its high-bandwidth portfolio and reach in the in-building network market segment.
The approximately $870 million deal, previously announced in December, includes 3M’s optical fiber and copper cable connectivity products, including xDSL, FTTx, and structured cabling solutions.
The sale of 3M’s remaining telecommunications system integration services business – based in Hanover, Germany, and accounting for an additional $30 million – is still pending, but is expected to close by the end of the year.
Corning forecasts the business will generate approximately $400 million in sales annually beginning in 2019. The deal will also help extend Corning Optical Communications’ access to international customers, particularly in Europe, the Middle East and Asia, and the Central and Latin America regions, the company said.
About 500 3M employees are joining Corning as part of the deal.
“We are excited to welcome our new colleagues to the Corning family and look forward to the telecommunications system integration services team joining us shortly,” said Clark S. Kinlin, EVP of Corning Optical Communications, in a statement. “As we continue to grow our leadership position in optical communications, the combined force of our people, portfolio, and co-innovation engine strengthens our ability to transform the way the world connects. Our customers around the world count on us to provide what they need to get ahead. We are continually expanding our capabilities and innovating to increase deployment speed and network capability, while reducing the customers’ total cost of ownership.”
Corning said the deal falls in line with the company’s multi-year strategy and capital allocation plan that earmarks between $1 billion and $3 billion for acquisition investments.