May 20, 2010 (FinancialWire) — Tii Network Technologies, Inc. (NASDAQ: TIII), a firm that makes network products for the communications industry, said it has completed the acquisition of all of the assets and assumed certain operating obligations, primarily accounts payable, of the Copper Products Division of Porta Systems Corp. for  $8.2 million in cash.

Tii said it paid for the acquisition with available cash on hand.  

Included as part of the assets acquired are subsidiaries in the United Kingdom and Mexico. Concurrent with this acquisition, Tii sold, for $1 million in cash, a majority interest in the Mexican operations to its principal contract manufacturer, who will operate this manufacturing facility.

The company said it will be paid an additional $1.5 million from its contract manufacturer for raw materials at the facility as these materials are used in production.

New York-based Porta Systems designs and manufactures surge protection modules, connectivity blocks and housings for the telecommunications industry.

According to Tii, the 2010 annual sales for the CPD are estimated to be around $25 million and it is expected that Tii's sales will now exceed $55 million on an annualized basis.

Tii said it has hired 13 of Porta's employees consisting primarily of engineers and sales personnel.  The company expects that the acquisition will be accretive to earnings beginning in the third quarter of 2010.  

New York-based Tii Network Technologies designs, manufactures and sells products to the service providers in the communications industry for use in their networks. 

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