Monday, February 28, 2011

Overture + Hatteras Merger Targets Carrier Ethernet Acceleration

Overture Networks and Hatteras Networks agreed to merge, creating a larger and more competitive supplier of Carrier Ethernet products. Hatteras is a leading supplier of Ethernet over Bonded Copper solutions, while Overture is the frontrunner in Ethernet over TDM and recently introduced a set of Ethernet over Fiber platforms. Financial terms were not disclosed.

Both companies are venture-backed, privately-held start-ups based in North Carolina's Research Triangle Park.

Going forward, the combined company will use the Overture Networks' name. Jeff Reedy will continue to serve as chief executive officer of Overture Networks. Kevin Sheehan, who formerly served as chief executive officer of Hatteras Networks, has been appointed president of Overture Networks.

In a conference call, Reedy and Sheehan said the merger was driven by a desire to scale-up the operations to meet the rising demand for Carrier Ethernet solutions by Tier 1, 2, and 3 carriers both domestically and overseas. The companies both report record revenue for 2010. They noted non-overlapping customer bases and product portfolios. The combined entity will have about 200 employees.

"We have a unique opportunity to build a great company with the innovation and scale to bring a complete set of products and services to our customers," said Jeff Reedy, chief executive officer, Overture Networks. "Our two companies have grown up together as neighbors, and we have come to appreciate each other's strengths and at times envied the other's successes. Having each completed record setting years, the time is right to join together and establish a dominant force in the market."

"The unification of our two highly successful and profitable companies with a shared customer focus and leading-edge product portfolios will be extremely beneficial for the communications service provider industry around the world," said Kevin Sheehan, newly appointed president of Overture Networks and former chief executive officer, Hatteras Networks.

  • In November 2010, Overture Networks introduced two new products, the ISG 400 and the ISG 4800, for enabling carriers’ migration to an all-optical Ethernet network. The ISG 4800 is a 10 Gigabit Carrier Ethernet Edge Platform with a rich feature set, operational flexibility and carrier class reliability, while the ISG 400 supports the delivery of Carrier Ethernet over TDM. Both offer a wide range of network interfaces for delivering Carrier Ethernet services over existing DS3 or SONET/SDH infrastructures.

  • Hatteras' flagship HN6100 is a modular, multi-service Ethernet platform that enables carriers to offer any service, over any media, via any port or slot from a single chassis. Its portfolio also includes the HN500, a cost-effective Ethernet-over-Time Division Multiplexing (EoTDM) demarcation device, which allows bonding of multiple PDH signals (T1 or E1) into a single Ethernet connection for delivery of 10 Mbps of Ethernet service capacity; as well as the HN4000 for facilitating high-speed symmetrical bandwidth up to 100 Mbps and Ethernet services over copper.