2Wire Picked Up by Pace

Wade Roush7/27/10

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 Xconomy's chief correspondent and editor of Xconomy San Francisco. You can e-mail him at wroush@xconomy.com or follow him on Twitter at twitter.com/wroush.