Siemens Pays $1.5 Billion To Strengthen Position In Broadband Market

ByBridgeNews Siemens AG, Europe's largest electronics firm, says it will buy Nasdaq-listed Efficient Networks Inc. for $1.5 billion or $23.50 per share in cash to strengthen its position in the broadband access equipment market in the United States. The offer represented a premium of around 90% to Efficient's closing share price Feb. 21 of $12.38. Dallas-based Efficient supplies digital subscriber line customer premises equipment (DSL CPE) such as modems for the broadband access market. Roland Koch, president of Siemens' information and communications network group, says the acquisition is a key element in Siemens' strategy. "With our focus on broadband access solutions, we can now offer our customers comprehensive end-to-end solutions, dramatically increasing our presence in this rapidly growing market segment, and enabling us to become one of the top three global suppliers of broadband solutions within the next three years."