Bonding for Broadband: Tellabs acquires AFC

Tellabs and AFC have entered a $1.9 billion deal under which Tellabs will acquire AFC. Upon completion of the transaction, Tellabs stockholders will own approximately 75% of the company and AFC stockholders will own 25%. 

Upon completion of the transaction, John Schofield, John Schofield currently the chairman and CEO of AFC, will become the chief operating officer and a director at Tellabs. The Tellabs board will be expanded to include three AFC directors, including Schofield, increasing the size of Tellabs' board to 12 members. The deal is expected to close in the second half of 2004. 

The combined company will employ about 4,100 people, including nearly 1,000 in international locations. It will have research and development centers in Illinois, California, Florida, Texas, Virginia, Denmark and Finland, as well as 41 sales offices in 29 countries.