Digital technology group Pace plc has today announced a £300m deal to buy a leading US residential broadband systems provider that supplies some of North America's leading telephone companies such as AT&T.

The cash deal will make Saltaire-based Pace the number one provider of telecoms residential gateway devices in the US and the number three globally. Earlier this year the company was confirmed as the number one global digital set-top box company.

The Pace board sees the acquisition of 2Wire, Inc as a logical extension of its strategy that will build on its position in cable and satellite markets in the United States.

Neil Gaydon, Pace chief executive, said: "This acquisition will strengthen our Americas business, extending Pace's US market coverage with entry into the tier one telco market. We have built a strong position in the US with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements.

"2Wire's software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth."

Pasquale Romano, 2Wire chief executive , said: "Pace is an excellent strategic fit for the 2Wire business and will enable us to take our products and services to the next level of their development. The combined customer base, engineering capability and product breadth of Pace and 2Wire make this a compelling transaction for our customers, our employees and our end users globally."