Sunday, December 11, 2011

ADTRAN to Acquire Nokia Siemens Networks Fixed Line Broadband Access Business

ADTRAN will acquire Nokia Siemens Networks' fixed line Broadband Access business (BBA), and associated professional services and network management solutions, for an undisclosed sum. Approximately 400 people, including engineering, R&D, sales and professional services employees, are expected to transfer to ADTRAN globally. ADTRAN expects the acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter.

The BBA product set includes IP DSLAMs designed for the international market as well as next generation optical access. The biggest customer is Deutsche Telekom and others include Bezeq, Sunrise Telecom, etc.

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.

ADTRAN said the deal will accelerate its sales outside of the U.S. Revenues from the acquired business are expected to be in the range of $140-180 million for the first full year following closure of the deal. The deal is expected to close in April 2012. Some manufacturing is likely to shift from Germany to the U.S.

"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.

"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. "The planned sale is in line with our new strategy to increase our focus on the mobile broadband and services market."

  • Nokia Siemens Networks has announced the sale of two groups, so far, as part of its strategic restructuring:

    NewNet Communication Technologies, LLC, a Skyview Capital, LLC portfolio company, will acquire NSN's WiMAX business for an undisclosed sum. This business unit was originally part of the Motorola Solutions' assets that Nokia Siemens Networks acquired earlier this year. The deal includes he complete WiMAX product portfolio, the related employees and assets, as well as active customer and supplier contracts. Approximately 300 Nokia Siemens Networks employees would transfer to NewNet. Many of these employees are based in suburban Chicago, USA and Hangzhou, China.

    DragonWave will acquire NSN's microwave transport business in a transaction potentially worth up to EUR 110 million. The deal provides DragonWave with an existing microwave transport business serving many top carriers worldwide, a more extensive product portfolio, an on-going agreement under which its will become the preferred, strategic supplier to Nokia Siemens Networks of packet microwave and related products, and joint R&D work with NSN.

  • Earlier this year, NS outlined plans to introduce a Next Generation Optical Access (NGOA) technology that uses a single optical fiber to bring broadband to up to 1000 homes at speeds of 1 Gbps per household, for both uploading and downloading at distances of up to 100 km from the central exchange. The system is expected to leverage Ultradense Wavelength Division Multiplexing (UDWDM) to split the optical signal at the OLT into much finer chunks of spectrum. The UDWDM approach reduces the backhaul fiber count and creates a PON-like topology. Nokia Siemens Networks said it is working in conjunction with the Open Lambda Initiative (OLI) to push for open standards.