Digital technology group Pace, which has unveiled interim profits up by nearly half, has announced a £300 million deal to buy a leading US residential broadband systems provider.

The deal to acquire 2Wire is seen as a logical extension to the Saltaire-based group’s development and will put it at the forefront of the residential broadband systems market in North America, supplying major telecommunications firms such as AT&T.

The cash deal will make 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.

Pace, whose global base is at Salts Mill, has unveiled a 46 per cent increase in pre-tax profits in the six months to June 30. These grew to £45.4 million compared with £31m in 2009.

Revenues increased by 21 per cent to £635.2 million, against £526.5 million.

The group’s cash reserves rose to £94.1 million from £73.5 million in the first half of last year.

Pace continued to increase its market share with strong demand from its global pay TV markets boosting the shipment of set-top boxes by 12.9 per cent to 9.6 million, compared with 8.5 million at the same stage last year.

Chief executive Neil Gaydon said: “These results were produced despite some challenges within the supply chain, due to the skill of our operations teams, scale and strong supplier relationships.

“Pace has become the world’s leading supplier of digital set-top boxes, an achievement built on our deep understanding of the pay TV operators’ business and market requirements and our ability to be first to deliver the technology that enables them to bring new services to market.

“With the announcement of our proposed acquisition of 2Wire, we expect to widen out our US customer base and opportunity as well as develop Pace’s technology capability.”

Pace said buying 2Wire was a logical extension of its strategy and would build on its position in cable and satellite markets in the United States.

Mr Gaydon said: “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. 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.”