ADTRAN, a provider of
networking solutions, has decided to acquire the Nokia Siemens Networks fixed
line broadband access business (BBA), and associated professional services and
network management solutions.
The acquisition will
include the broadband access intellectual properties, technologies and the
established customer base.
The sale is in line with
Nokia Siemens Networks’ new strategy to increase its focus on the mobile
broadband and services market.
Recently, Nokia Siemens
Networks sold its WiMAX business as well.
ADTRAN did not disclose
the size of the deal.
Approximately 400
people, including engineering, R&D, sales and professional services
employees, are expected to transfer to ADTRAN globally.
The agreement also
includes provisions which would allow ADTRAN solutions to be incorporated by Nokia
Siemens Networks into its customer propositions, broadening ADTRAN’s business
opportunities.
After close of the
planned transaction ADTRAN expects the acquired business will be neutral to
diluted earnings per share for the first full year and accretive thereafter.
“Nokia Siemens
Networks’ long standing customer relationships, combined with ADTRAN’s long
term focus and financial strength, make this a very favorable outcome for
customers, employees and shareholders. With this planned acquisition, ADTRAN
will combine its success with the strength of Nokia Siemens Networks’ Broadband
Access business to deliver a full portfolio of solutions to meet customer needs
on a global scale,” said ADTRAN CEO Tom Stanton.
Service providers around
the world are seeing high bandwidth services as an integral component of their
future opportunities. This strategic acquisition would position ADTRAN in key
markets with an established customer base; complementary market-focused
products; along with engineering, R&D, sales and professional services
resources that will enable ADTRAN to take a significant step forward as one of
the world’s leading communications solutions providers.
“We believe that
this planned divestment would provide our existing fixed broadband access customers
with a continuous high-quality service from a company focused on their
needs,” said Marc Rouanne, head of Mobile Broadband at Nokia Siemens Networks.
By Telecomlead.com Team
[email protected]
