The Carrier Ethernet marketplace saw some M&A yesterday, as Overture Networks and Hatteras Networks announced their agreement to merge. The two occupy different but complementary niches in the Ethernet market. Overture spends its effort on Ethernet over TDM and fiber, while Hatteras has focused on bonded copper pairs. Following the completion of the deal in a few weeks, the combined company will keep the Overture name. Financial details were not disclosed, but analysts suggest the total revenues are probably in the $60-80M range.
One almost wonders why they were separate in the first place, given that they're already headquartered within the same Dominos Pizza delivery area down in North Carolina's Research Triangle Park. They'll be moving to a new, larger facility and will probably find some cost savings in headcount reduction, but nobody is going to have to move. At the top, it will be Overture's Jeff Reedy with the CEO title, with Hatteras's Kevin Sheehan as President.
This is not the first time Overture has done the Ethernet M&A tango. They picked up Ceterus a couple of years ago in a similar type of deal with complementary products and customer bases. Still looking for that elusive scale I guess.
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