A month after buying AMP, Inc., Tyco International Ltd. continued its acquisition binge with a deal to buy Raychem Corp., Menlo Park, Calif., for $2.87 billion in cash and stock, or about $37 a share, plus the assumption of $400 million of debt.

Raychem, which had revenues of $1.8 billion in its fiscal year ended June 30, would merge with a subsidiary of Bermuda-based Tyco. Tyco expects to report more than $22 billion in revenue this year. The boards of both companies have unanimously approved the transaction, which is contingent on regulatory reviews and approval by Raychem shareholders.

Raychem sells to many of the same customers as AMP, Harrisburg, Pa. While some of the Raychem and Tyco businesses overlap, Tyco said few of the company's products compete directly. Tyco has four major business units: fire and security services; disposable and specialty products, including medical products; industrial valves; and electric components. Raychem makes electric and electronic components used in the telecommunications, motor vehicle and aerospace industries.