In merger news this morning, ADTRAN (NASDAQ:ADTN, news, filings) has agreed to acquire the broadband access business unit of Nokia Siemens Networks including the associated professional services, network managemeng solutions, and of course the underlying intellectual property. ADTRAN has a substantial position in the broadband access equipment market already, and this deal will give them some additional heft – especially via those valuable customer relationships.
Nokia Siemens Networks is in the midst of a massive reorganization after turning in a rather poor several years. Three weeks ago they announced a 28% downsizing over the next two years, and they have been selling off non-essential pieces. This deal is one of those of course, and they also unloaded their microwave division to DragonWave recently. As with the DragonWave deal, NSN will be coordinating with ADTRAN in the future for its broadband access needs, incorporating ADTRAN products into its customer propositions.
Today’s deal will see 400 people transfer from NSN to ADTRAN around the world, which will boost ADTRAN’s workforce by about 20-25% I believe. Financial details were not immediately available, but they may have more to say on that front in the conference call they have planned for later today. ADTRAN did say that they expect the deal to be neutral to earnings next year, and accretive thereafter. The deal is expected to close by the end of April 2012.
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