Showing posts with label Mergers. Show all posts
Showing posts with label Mergers. Show all posts

Wednesday, July 5, 2017

ABB acquires KEYMILE mission-critical communication business

ABB based in Switzerland, a supplier of electrification products, robotics, industrial automation and power grids, announced an agreement to acquire, on undisclosed terms, the mission-critical communication business of the KEYMILE Group to expand its communication networks portfolio.

The acquisition includes key products, software and service solutions, as well as research and development expertise that enhance ABB's digital offering, ABB Ability, adding high reliability communications technologies required for dynamic and complex digital electrical grids.

ABB noted that reliable information is key to accurate decision making in an increasingly automated world with extensive interconnected networks. More specifically, the operation of mission-critical systems such as electrical grids requires specialised communication networks with high performance and reliability.

The KEYMILE communication portfolio is designed to meet the demands of network operators for reliability, availability and cyber security. The company's mission-critical communication customer base includes operators of energy grids, railways, oil and gas pipelines, as well as public authorities. The 120 employees of the acquired business will join the Grid Automation business unit of ABB’s Power Grids division.

KEYMILE is headquartered in Hanover, Germany with a total of 350 staff worldwide. The company was founded in 2002 through a merger of three technology companies based in Austria, Germany and Switzerland. KEYMILE is a major manufacturer of mission-critical and broadband telecom solutions with installations spanning 100 countries. KEYMILE stated that following the sale of its mission-critical communications operation to ABB it will focus on delivering broadband systems, in particular optical technology.

KEYMILE products enable network operators to deliver voice and data services over FTTx network architectures via a portfolio of VDSL-/vectoring- and G.fast-solutions. The IP-MSAN MileGate platform enables simultaneous usage of Ethernet/IP and traditional TDM, as well as SDH-/PDH-technology, from a single network element. This helps enable the efficient migration of connection-oriented voice and data technology to packet-based networks.


The transaction is expected to close during the third quarter of 2017.


Tuesday, May 30, 2017

Melita and Vodafone Malta to merge to create fixed and mobile service provider

Vodafone Group, together with Apax Partners Midmarket and Fortino Capital, announced an agreement to combine broadband, cable and pay TV company Melita and Vodafone Malta.

Under the terms of the transaction, Vodafone Malta, the country's largest mobile operator, operating a 4G mobile network covering 99% of the Maltese population, will be combined with Melita, the largest provider of cable, broadband and pay TV services with a network covering 99% of Maltese households. Melita offers a range of content and high speed broadband with download speeds of up to 250 Mbit/s.

The transaction values Vodafone Malta at an enterprise value of Euro 208 million, and values Melita at an enterprise value of Euro 298 million. At completion, the shareholders of Melita will own 51% of the combined company and Vodafone Europe, the current shareholder of Vodafone Malta, the remaining 49%2. The combined entity will have net debt of approximately Euro 345 million and Vodafone will receive an estimated cash payment of Euro 120 million, with Melita shareholders receiving an estimated cash payment of Euro 33 million.

On closing, the combined company's mobile and enterprise business will operate under the Vodafone brand and will offer a range of solutions, including Vodafone's portfolio of products and services, as well as having access to Vodafone's expertise and capabilities in mobile and fixed operations.

The combination will establish a new integrated communications company with the scale and resources to deliver quad play bundled mobile, fixed broadband, fixed telephony and TV services to consumers and a range of enterprise services for businesses and the public sector in Malta. Vodafone noted that the new company will be better positioned to compete with the integrated incumbent Maltese operator GO.

The combined company expects to realise cost synergies through the rationalisation of duplicated activities and improved network investment efficiency as the company begins to introduce 4.5G, and in the future 5G, mobile networks and gigabit-capable fixed networks.

For the year ended December 31, 2016, Vodafone Malta generated Euro 30 million of underlying EBITDA and Euro 14 million of underlying operating free cash flow; for the financial year ended March 31, 2016 Vodafone Malta generated a pre-tax profit of Euro 11 million. For the twelve months ended December 31, 2016, Melita generated Euro 33 million of underlying EBITDA and Euro 20 million of underlying operating free cash flow.

The Melita shareholders intend to appoint the current CEO of Melita, Harald Rösch, as CEO of the combined company and Vodafone intends to appoint the current CFO of Vodafone Malta, Caroline Farrugia, as CFO.


The transaction, which requires approval from the Malta Competition and Consumer Affairs Authority, is currently expected to close in the second half of 2017.

Wednesday, May 24, 2017

Sonus and GENBAND to merge to create company with $680m annual revenue

Sonus Networks, a provider of solutions that enable secure and intelligent cloud communications, and GENBAND, a supplier of carrier and enterprise network transformation and real-time communications solutions, announced a definitive agreement under which the two companies will combine to create a major next-generation communications networking company.

Under the terms of the agreement, Sonus and GENBAND shareholders will each own approximately 50% of the combined entity. Based on the closing price of Sonus' common stock on May 22nd of $7.79 and estimated net cash at the time of closing, the transaction values the combined company at an enterprise value of approximately $745 million.

On closing, Sonus and GENBAND will combine into a newly formed holding company. Each Sonus shareholder will receive one share of common stock in the combined company for each existing Sonus share held; the new company will issue approximately 50 million shares to GENBAND's equity owners, plus $22.5 million in the form of an unsecured note. The combined company will have an estimated net cash position of $40 to $45 million.

The transaction will combine Sonus' established software-based real-time communication virtualisation, cloud-based SIP and 4G/VoLTE and security solutions with GENBAND's network modernisation, unified communications and mobility and embedded communications solutions. Together, Sonus and GENBAND will be better positioned to enable the transformation to IP and cloud-based networks for service providers and enterprise customers.

The combined company will have a global sales footprint in 27 countries, a customer base that includes may Tier 1 carriers, with 67% of combined 2016 revenue for the two companies generated in the U.S. and Canada, 18% in EMEA, 11% in APAC and 4% in CALA.

The two companies' combined revenue and EBITDA in 2016 would have been approximately $680 million and $50 million, respectively, excluding synergies. The transaction is expected to be significantly accretive to Sonus' earnings per share in 2018. The combined company expects to realise annual cost synergies of $40 to $50 million by the end of 2018.

The CEO of the combined company will be Raymond Dolan, current president and CEO of Sonus; David Walsh, current CEO and chairman of GENBAND, will oversee the Kandy business, GENBAND's cloud communications platform as a service (CPaaS). Daryl Raiford, current CFO of GENBAND, will serve as CFO of the combined company. The board of directors of the combined company will comprise five representatives designated by GENBAND and four representatives designated by Sonus.

The transaction has been unanimously approved by the boards of both companies, and is expected to close in the second half of 2017, subject to Sonus and GENBAND shareholder approval, listing of the combined company's common stock on Nasdaq and other customary closing conditions.


Thursday, June 9, 2016

Nokia to Acquire Gainspeed for Virtualized Cable Architecture

Nokia agreed to acquire Gainspeed, a start-up specializing in DAA (Distributed Access Architecture) solutions for the cable industry via its Virtual CCAP (Converged Cable Access Platform) product line. Financial terms were not disclosed.

Gainspeed's Virtual CCAP enables cable operators to increase the capacity of their existing HFC (Hybrid Fiber Coax) infrastructure and rapidly deploy new services, while simultaneously reducing space and power requirements in the headend. The solution also enables cable operators to migrate their networks to a software-driven, all-IP architecture.

Gainspeed's design eliminates the physical CCAP by leveraging SDN and NFV to distribute the CCAP’s functions to other devices and locations in the network. This centralizes routing, control and management in the data center or cloud and pushes
the physical layer, DOCSIS processing and RF modulation into the node, deep within
the access network

Gainspeed is based in Sunnyvale, California and has approximately 70 employees.

Federico Guillen, president of Nokia's Fixed Networks business group, said: "We are very excited to have Gainspeed, the technology leader in its field, joining us. Cable is one of the fastest growing areas in our fixed networks business, and we are committed to delivering a complete solution set to cable operators. Gainspeed's Virtual CCAP perfectly complements our leading fiber access solutions for cable MSOs."

http://www.nokia.com
http://www.gainspeed.com/


  • Gainspeed is headed by Krish Padmanabhan, who previously was Senior Vice President of Products and Solutions at Harmonic Inc., where he oversaw overall strategy for its video playout and compression portfolio.
  • Gainspeed was founded in 2012 by Shlomo Rakib (previously co-founded Novafora and Terayon Communication Systems, where he invented the SCDMA technology that was the basis for DOCSIS 2.0), Jeff White (previously president of Hatteras Networks),  Mark Stalica (previously Vice President of Strategic MSO Accounts for Metaswitch Networks), and Drew Perkins (previously a co-founder at Infinera, On-Fiber Communications, Lightera Networks, FORE Systems, and InterStream).

Thursday, November 20, 2014

MACOM Acquires BinOptics for Indium Phosphide Lasers

M/A-COM Technology Solutions Holdings (MACOM) agreed to acquire BinOptics Corporation, a merchant provider of Indium Phosphide lasers, for $230 million in cash.

BinOptics' highly differentiated edge-emitting and surface-emitting Fabry Perot and DFB lasers are used in applications such as data centers, mobile backhaul, silicon photonics and access. The company has developed proprietary Etched Facet Technology (EFT) for lasers that enable compelling wafer-scale economics in both device manufacturing and testing. The company is based in Ithaca, New York.

MACOM is a leading supplier of high performance RF, microwave, and millimeter wave products.

http://www.macom.com/
http://www.binoptics.com/

Saturday, April 26, 2014

Exar to Acquire Taiwan's iML for Flat Panel Silicon

Exar Corporation, which supplies analog mixed-signal, video and data management solutions, agreed to acquire Integrated Memory Logic Limited (iML), a provider of analog mixed-signal solutions for the flat panel display market.  Exar will pay acquire all of the outstanding shares of iML for NT$91.00 (approximately US$3.00) per iML share in cash and acquire any remaining shares at NT$91.00 per share pursuant to a follow-on merger. The gross transaction value will be NT$6.8 billion (approximately US$223 million), or NT$3.1 billion (approximately US$94 million), net of cash acquired.

Exar said the iML acquisition supports Exar's strategy of building a large scale diversified analog mixed-signal business.

"The acquisition of iML will increase the diversity of the markets we serve and add highly differentiated analog mixed-signal and power management products to our portfolio. iML is a leading provider of power management and color calibration solutions for large and medium-sized flat panel displays in the LED television market as well as high-resolution tablets. The company serves customers in Korea, Taiwan, Japan and China, which will enhance Exar's existing presence in these markets.  Additionally, iML has demonstrated consistent profitability and gross margins that reflect the value of the company's differentiated products," said Louis DiNardo, Exar President and CEO.

http://www.exar.com
http://www.iml.com

Thursday, February 13, 2014

Comcast to Acquire Time Warner Cable

In a deal that combines the No.1 and No.2 cable operators, Comcast has agreed to acquire Time Warner Cable for $159 per share, representing a enterprise value of about $45 billion.

Comcast is the largest U.S. cable operator with approximately 23 million subscribers.  Time Warner Cable has about 12 million subscribers.  The combined company would have $86.8 billion in annual revenue.

The proposed merger is expected to face regulatory reviews. Comcast and Time Warner said they are prepared to shed 3 million subscribers if needed to gain approvals.

Previously, Charter offered $132 per share to acquire Time Warner - a bid that was rejected by the company as below value.

The companies believe they will be able to achieve $1.5 billion in ongoing operational efficiences, including $400 million in capital savings through the merger.

http://www.comcast.com
http://www.timewarnercable.com/

Thursday, January 9, 2014

Convergys to Acquire Stream for Customer Mgt - $820 Million

Convergys Corp. agreed to acquire Stream Global Services, both providers of customer management services, for a total enterprise value of $820 million in cash.

Convergys said the deal will expand and strengthen its U.S. and global presence in the $55 billion outsourced customer management services industry. When combined, total company revenue is expected to exceed $3 billion, creating the second largest customer management services provider in the world.

Convergys will finance the deal using funds managed by Ares Management and Providence Equity Partners, as well as from LiveIt, the BPO investment arm of Ayala Corp. Convergys also announced the transaction is expected to add approximately $0.35 in diluted earnings per share (EPS) in the first 12 months after close, excluding one-time charges, intangible amortization and integration costs.

“This acquisition is an important step forward in our plan for strategic growth and value creation,” said Andrea Ayers, president and CEO of Convergys. “We believe this combination will strengthen Convergys by diversifying our client base and enabling us to offer a wider range of customer transactions in a more cost effective manner from multiple geographies, at scale. Our plan is to build upon the best practices and management teams from both companies to deliver superior customer benefits and enhanced value for our clients and shareholders, and provide new opportunities for our employees,” Ayers said.

http://www.convergys.com/company/news-events/newsroom/news_release.php?newsid=5087
http://www.stream.com

See also