ADTRAN + ADVA merger targets fiber broadband opportunities

ADTRAN and ADVA announced a merger focused on end-to-end fiber networking solutions for communications service provider, enterprise and government customers. 

The deal combines ADTRAN’s market presence in fiber access, fiber extension and subscriber connectivity solutions with ADVA’s position in metro wavelength division multiplexing, data center interconnect, business ethernet and network synchronization solutions. The new company, which will retain the ADTRAN name, has last twelve month's (LTM) revenue of $1.2 billion and combined LTM EBITDA of $183 million. 

On an investor call, company executives cited a number of drivers for the merger, including

• The unprecedented investment cycle in fiber broadband in the U.S. and Europe, including the metro aggregation network upgrades that will be necessary to support FTTH buildouts
• On-going technology transition cycles including the adoption of open, disaggregated architecture, SaaS, 100/400G in metro, 10G in access and Wi-Fi 6 on premise.
• The shift from Chinese vendors to trusted suppliers, especially in Europe.

Some additional points:

• The new company will operate as ADTRAN Holdings, Inc.
• The global headquarters will be in Huntsville, Alabama with European headquarters in Munich, Germany.
• The new management team: ADTRAN’s Chairman and CEO, Tom Stanton, will serve in the same capacity following the close of the transaction. ADVA’s CEO, Brian Protiva, will transition into the role of Executive Vice Chairman. ADTRAN’s CFO, Mike Foliano, will remain in his current role and ADVA’s CTO, Christoph Glingener, will serve in the same capacity for the combined entity.
• The Board of Directors of the combined company will comprise 9 directors, 6 of whom will be directors
• designated by ADTRAN and 3 of whom will be directors designated by ADVA.
• The combined company will be dual-listed on the NASDAQ and Frankfurt Stock Exchange.

"We are in the early stages of an unprecedented investment cycle in fiber connectivity, especially in the U.S. and Europe, fueled by the demand for last-mile fiber access and middle-mile transport to provide high-speed connectivity to homes, businesses and future 5G infrastructure,” said ADTRAN Chairman and CEO Thomas Stanton. “By joining forces, our combined firm’s portfolio will better position us to capitalize on this highly compelling global opportunity. We expect the transaction will create significant long-term value for both companies’ stakeholders by increasing our scale and improving our ability to serve as a trusted supplier for customers worldwide.”

“The business combination is an outstanding opportunity to leverage the complementary nature of our customers and product portfolios and the compatibility of our companies’ businesses and culture,” said ADVA CEO Brian Protiva. “We are excited to join forces and create a world-class team with exceptional technology expertise and customer focus. Our shared vision and passion for innovative networking solutions will benefit our customers through an enhanced value proposition, including a fully integrated end-to-end architecture for enterprise, access and metro core markets.”

Under the deal, each ADVA share will be exchanged for 0.8244 shares of common stock in the new holding company. The offer is equivalent to €14.98 per ADVA share based on ADTRAN’s 3-month VWAP as of August 27, 2021, representing a premium of 22% to ADVA’s 3-month VWAP for the same time period, an equity value of €789 million, and an enterprise value of €759 million for an implied multiple of 1.3x LTM Revenue. ADTRAN shares will be exchanged for shares in the new holding company on a one-for-one basis. At the closing, ADTRAN shareholders will own approximately 54% of the equity of the combined company and ADVA shareholders will own approximately 46%, assuming a tender of 100% of ADVA shares.

https://investors.adtran.com/news-and-events/events/event-details/2021/ADTRAN-Call/default.aspx

• In 2012, ADTRAN acquired 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, transferred to ADTRAN globally. The BBA product set acquired included IP DSLAMs designed for the international market as well as optical access products. The biggest customer at the time was Deutsche Telekom, Bezeq, Sunrise Telecom, etc.

ADTRAN's Combo PON been adopted by more than 100 operators

Wednesday, July 14, 2021  ADTRAN, PON, XGS-PON  

 ADTRAN's Combo PON technology, which launched in June 2020, has been adopted by more than 100 operators worldwide, including every type of service provider—from altnets, RDOF recipients, multinational Tier 1 operators and cable operators.Combo PON makes upgrading to symmetrical 10G PON services simple by seamlessly supporting the installed base of GPON subscribers while blanketing the entire FTTH network with the higher speed and capacity of...

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Openreach activates first customer on ADTRAN’s GPON

Wednesday, February 10, 2021  ADTRAN, Openreach, UK  

Openreach has activated its first live subscriber with the ADTRAN SDX series fibre access platform and the Mosaic Cloud network automation platform.This announcement comes as Openreach continues its record build rates for its Full Fibre broadband programme. With Openreach engineers now delivering faster, more reliable connectivity to 42,000 homes and businesses every week.  ADTRAN said its SD-Access portfolio will be instrumental in expanding...

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Deutsche Telekom activates its Access 4.0 FTTH/B platform

Thursday, January 21, 2021  Deutsche Telekom, SDN  

Deutsche Telekom confirmed the commercial activation of its new Access 4.0 platform, a network service activation and management system based on open, disaggregated, and microservices technologies.The first customer started using an FTTH line in Stuttgart via the new 4.0 platform just before Christmas. "Deutsche Telekom is reaching an important milestone in its transformation into a software-based telecommunications provider," explains Walter...

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Deutsche Telekom updates network expansion

 Deutsche Telekom said its 5G and FTTH rollouts are moving according to plan.

Two key metrics on the network expansion achieved so far in 2021:

• 430,000 FTTH fixed lines enabled. This required 30,000 km of fiber. In July alone, more than 85,000 connections were made.
• 5G population coverage increased to over 85 percent. A total of 55,000 antennas are now transmitting with 5G in Telekom's mobile network.  5G on the ultra-fast 3.6 GHz frequency band is now available in more than 60 cities.

In a briefing in Bonn, Srini Gopalan, member of the Telekom Board of Management responsible for business in Germany, and Walter Goldenits, Telekom's Head of Technology in Germany, also confirmed that reconstruction in the flooded areas is progressing. Telekom is deploying fiber optics for reconstruction in 17 parts of communities that were severely affected by the floods and will connect around 35,000 households directly to its fiber network.

Srini Gopalan: "With our modern fiber infrastructure, we offer our customers exactly what they expect from us: the best connectivity in the best networks. That's why we're not slowing down in our rollout, but continuing to ramp up our machinery. Our ambition is to be the leader in both fixed and mobile communications. To this end, we are investing over EUR 2 billion a year in fiber roll-out. More than any of our competitors."

"In communities with fewer than 20,000 inhabitants, the digital infrastructure is often not as well developed as in the big cities. That is why we want to implement at least eight million fiber connections in rural areas by 2030. Fiber rollout is a highly complex local business. That is why open dialog with local authorities and their decision-makers is so important to us. That is also one reason why we are increasingly shifting responsibilities and decision-making authority from Bonn to the regions," says Srini Gopalan.

"For us, 5G is an 'and technology', not an 'or technology'. Our 5G approach is all about speed and latency. So is urban and rural 5G. We combine frequency bands. And we use the technologies in such a way that our customers have the highest added value," explains Walter Goldenits.

"We are currently operating stand-alone sites in four German cities and are very satisfied with the tests. This technology will unleash the full potential of virtual and augmented reality, mobile gaming and industrial networking. However, various development steps are still necessary before the switchover is complete, as added value for our customers is our top priority - and this added value lies in providing high-speed coverage over as large an area as possible," continues Walter Goldenits.

https://www.telekom.com/en/media/media-information/archive/telekom-right-on-schedule-with-5g-and-fiber-roll-out-634854

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South Reach lights up Florida network with Infinera

South Reach Networks (SRN), a Florida-based telecommunications infrastructure provider, has activated service in its southeast U.S. long-haul and metro networks using Infinera’s GX Series Compact Modular Platform. 

SRN’s new, low-latency fiber optic network spanning over 400 miles along the coast of Florida network offers new high-speed Ethernet and Wavelength services to connect data centers, service providers, and enterprise customers.

“South Reach Networks is one of the first to offer such robust options for lit services from Miami to Jacksonville, and to provide new diverse fiber services to the growing communities in the Central East Coast that historically had limited fiber options for these types of services,” said Kevin Rocks, EVP Sales and Marketing for South Reach Networks. “Deploying industry-leading solutions like Infinera’s GX G30 platform across our network infrastructure enables us to offer customers 10G, 100G, and 400G Ethernet and Wavelength services today while also positioning our network to seamlessly expand to 800G in the future.”

“Infinera’s GX G30 platform is an ideal solution for innovative network operators to quickly, easily, and cost-effectively launch the latest high-speed services to a diverse set of customers,” said Nick Walden, Senior Vice President, Worldwide Sales, Infinera. “Infinera is delighted to partner with South Reach Networks to bring these types of differentiated services to a broader set of customers.” 

https://srnetworks.net/

https://www.infinera.com/

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ZTE's 1H2021 rise 12% YoY driven by consumer business

ZTE reported operating revenue of RMB 53.07 billion (approximately US$8.2 billion)for the first half of 2021, 12.4% higher than a year earlier. During the period, net profit attributable to holders of ordinary shares of the listed company reached RMB 4.08 billion, an increase of 119.6%, and net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted to RMB 2.11billion, representing a year-on-year increase of 134.2%. Basic earnings per share was RMB 0.88. 

ZTE notes that it achieved double-digit growth in both its domestic and international revenue for the first half of 2021. 

In domestic market, ZTE's operating revenue was RMB 35.95 billion, a year-on-year increase of 13.2%, accounting for 67.7% of the total operating revenue. In international market, the company's operating revenue t rose 10.8% to RMB 17.12 billion, covering 32.3% of the total operating revenue.

• Some additional highlights for 1H2021:
• Operating revenue from the carriers' networks amounted to RMB 35.05 billion
• Operating revenue of its government and corporate business increased by 17.7% to RMB 5.67 billion, with server and storage products services doubling on a year-on-year basis in domestic market. 
• In consumer services, ZTE achieved revenue of RMB 12.35 billion, a year-on-year increase of 66.6%, with revenue of its residential terminal services and mobile devices services rising over 90% and  40% respectively. 
• In the first half of 2021, the company’s R&D spending amounted to RMB 8.86 billion, which was 16.7% as a percentage of operating revenue.

https://www.zte.com.cn/global/about/news/20210827e1.html

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CommScope intros modular Fiber Optic Splice Closure

CommScope introduced its modular Fiber Optic Splice Closure (FOSC). The new dome splice closure is designed to speed fiber installation and facilitate the servicing and extensibility of these connections as operators build their networks of the future. The closure allows cables to enter the chassis at several points—with no need to take apart and re-install the entire closure. With the FOSC Modular Splice Closure operators can select a single closure to cover a range of network technologies, topologies, cable types, and installation requirements for their feeder and distribution.

“Our FOSC Modular Splice Closure is a breakthrough in versatility for fiber closures that will help accelerate the deployment of tomorrow’s high-speed broadband networks,” said James DeCoe, vice president, Network Connectivity, CommScope. “With its general availability, operators will be able to simplify their cable installations and have the peace of mind that their connections will continue to be protected as they evolve their networks.”

http://www.commscope.com 

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Renesas completes acquisition of Dialog Semi

Renesas Electronics completed its previously announced acquisition of Dialog Semiconductor Plc.  Renesas will fund the cash consideration payable to Dialog shareholders of approximately EUR 4.8 billion (approximately 624.0 billion yen at an exchange rate of 130 yen to the Euro) through a combination of debt, cash on hand and the proceeds of an equity offering of approximately 222.6 billion yen 

Dialog, which is based in Reading, UK, is provider of highly-integrated and power-efficient mixed-signal ICs used in IoT, consumer electronics and high-growth segments of automotive and industrial end-markets. Dialog brings a wide range of product offerings including battery and power management, power conversion, configurable mixed-signal (CMIC), LED drivers, custom mixed-signal ICs (ASICs), and automotive power management ICs (PMICs), wireless charging technology, and more. Dialog also offers broad and differentiated BLE, WiFi and audio system-on-chips (SoCs) that deliver advanced connectivity for a wide range of applications; from smart home/building automation, wearables, to connected medical. All these systems complement and expand Renesas’ leadership portfolio in delivering comprehensive solutions to improve performance and efficiency in high-computing electronic systems. Dialog was founded in 1981 and has 2,300 employees.

“Today represents an important milestone for Renesas. This transaction builds on our long-term strategy to offer a complete set of solutions with more leading-edge analog and mixed signal products that deliver value and innovation to the customers,” said Hidetoshi Shibata, President & CEO of Renesas. 

https://www.renesas.com/br/en/document/ppt/renesas-and-dialog-zoom-webinar-presentation-material

Renesas to acquire Integrated Device Technology for $6.7 billion

Tuesday, September 11, 2018  IDT, Japan, Mergers And Acquisitions, Renesa, Silicon Valley  

Renesas Electronics Corporation of Japan has agreed to acquire Integrated Device Technology (IDT, NASDAQ: IDTI) for approximately US$6.7 billion (approximately 733.0 billion yen at an exchange rate of 110 yen to the dollar), combing two recognized leaders in embedded processors and analog mixed-signal semiconductors. IDT shares are to be acquired at a price of US$49.00 per share. IDT, which is based in San Jose, California, is a leading supplier...

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Renesas to Acquire Intersil for $3.2 Billion

Monday, September 12, 2016  Mergers And Acquisitions, Silicon  

Renesas Electronics Corporation agreed to acquire Intersil for US$22.50 per share in cash, representing an aggregate equity value of approximately US$3.2 billion (approximately 321.9 billion yen at an exchange rate of 100 yen to the dollar). Renesas supplies microcontroller (MCU) and system-on-chip (SoC) products and technologies.  Intersil specializes in power management and precision analog capabilities. The acquisition is also expected...

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DE-CIX opens Internet Exchange in Phoenix

DE-CIX is adding Phoenix, Arizona as its fifth IX in the U.S. DE-CIX Phoenix will be available at leading data centers throughout the market.

“Phoenix is the new urban technology center of the western U.S. As a core hub for data centers, connectivity is robust, with over 60 long-haul, metro fiber telecom, broadband, and wireless networks traversing the market,” comments Ivo A. Ivanov, CEO of DE-CIX International. “DE-CIX’s expansion to Phoenix increases our relevance in the North American market, bringing data and interconnection services closer to the users as our locations are now spanning from East to West. We continue to cement our position as the largest carrier and data center neutral interconnection ecosystem in North America and the world.”

• DE-CIX New York, launched in 2014, is now the leading neutral IX provider in the New York/New Jersey market, with over 260 networks. 
• DE-CIX Dallas, launched in 2016, is the market’s leading neutral IX, with over 100 networks connected. 
• DE-CIX Chicago, launched in 2020, is accessible from over 13 data center locations, making it the most distributed IX in that market. 
• DE-CIX Richmond, announced in 2020, with support from the RVA-IX, is set to become the market’s largest IX. 

https://www.de-cix.net/

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Zayo appoints Ginna Raahauge as CIO

Zayo announced the appointment of Ginna Raahauge as Chief Information Officer (CIO), reporting directly to Zayo’s CEO, Steve Smith.

Raahauge brings more than 28 years of experience as a CIO and Chief Technology Officer (CTO) for global organizations from pre-IPO to Fortune 100 companies. Most recently, Raahauge served as an executive in solution and sales engineering for Amazon Web Services (AWS), leading teams who work with start-ups to enterprises, covering everything from infrastructure through to application development. She previously served as CTO and SVP of strategy, architecture and mergers and acquisitions for Catholic Health Initiatives.

Raahauge currently serves as a technology advisory board member for Greylock Partners and previously served on the advisory board of Sutter Hill Ventures. She is also the co-founder of an angel investment firm, specializing in bringing capital to demographics that have historically been ignored.

https://zayo.com

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Kaloom appoints Marc Tremblay as Chief Sales Officer

Kaloom has appointed Marc Tremblay as Chief Sales Officer.

Tremblay most recently led sales teams at Pivotal (later acquired by VMware), generating significant business results and customer satisfaction during the four years he was there. Prior to that Tremblay concluded a successful 30-year career with IBM that saw him lead numerous teams across multiple industries culminating with his role as Vice-President, Communications Sector where his team grew the business 300 percent over four years. In addition, Tremblay has served on numerous Board of Directors including Averna Technologies, Golf Québec and Groupe Conseil OSI where he also served as President.

https://www.kaloom.com/

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