2Wire Picked Up by Pace

Pace PLC, the UK-based provider of digital pay TV technologies, said yesterday it will acquire San Jose, CA-based 2Wire, which makes the broadband cable modems deployed in homes by AT&T and other telecommunications companies. Pace will pay $475 million for 2Wire, which had raised nearly $200 million in venture financing since its 1998 launch, according to PE Hub, and is thought to have $55 million in cash on hand. The acquisition will make Pace the United States’ biggest provider of residential gateway devices.

Wade Roush is the producer and host of the podcast Soonish and a contributing editor at Xconomy. Follow @soonishpodcast

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