ADTRAN announced today (12 December 2011) that it plans to acquire, through an asset sale and purchase agreement, the Nokia Siemens Networks fixed-line Broadband Access business (BBA), and associated professional services and network management solutions. The planned acquisition will include the Broadband Access intellectual properties, technologies and the established customer base.
As part of this planned transaction, up to approximately 400 people, including engineering, R&D, sales and professional services employees, are expected to transfer to ADTRAN globally. The agreement also includes provisions that would allow ADTRAN solutions to be incorporated by Nokia Siemens Networks into its customer propositions, broadening ADTRAN’s business opportunities.
The planned transaction is expected to close by the end of April 2012 subject to the completion of a consultation process with certain employees and their representatives, finalization of transition services agreements and customary closing conditions. 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.
Marc Rouanne, head of Mobile Broadband at Nokia Siemens Networks, said: ‘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. The planned sale is in line with our new strategy to increase our focus on the mobile broadband and services market.’
ADTRAN is a global provider of networking and communications equipment, with a portfolio of more than 1,700 solutions. Its products enable voice, data, video, and Internet communications across a variety of network infrastructures.