Exits – Altitun sells to ADC Telecom

Altitun, Stockholm-based provider of the world’s most complete tuneable laser product line, has been sold to ADC Telecommunications in exchange for 15,227,000 ADC Telecommunications common shares valued at $871.7 million (EURO960 million). (The valuation is provided on the basis of ADC Telecommunications’ closing price of $57.25 per share on May 4.) The acquisition will be accounted for by a pooling of interests.

In December 1999 Altitun completed a second round of venture capital financing for $10 million.

At this second round stage, European IT venture capital fund Kennet Capital invested $2 million in Altitun. As part of the financing agreement, Kennet managing director Michael Elias joined Altitun’s board of directors.

Altitun also received $2 million from Vision Capital of Menlo Park, California, which targets European-based technology companies entering the US. Vision Capital’s Dag Tellefsen also joined Altitun’s board of directors.

Altitun received the balance of the second round of investment from Telia Business Innovation and Frank Bonsal, Jr., and others. Bonsal is the founder of New Enterprise Associates in Baltimore, US.

Morgan Stanley advised Altitun on its sale to

ADC Telecommunications, and Credit Suisse First Boston advised ADC Telecommunications. ADC Telecommunications took legal advice from Dorsey & Whitney.

Altitun has offices in California, Massachusetts, the UK and Sweden.