Acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter
Networking offerings provider ADTRAN is planning to acquire Nokia Siemens Networks fixed line Broadband Access business (BBA), and associated professional services and network management offerings through an asset sale and purchase agreement.
The acquisition would include the Broadband Access intellectual properties, technologies and the established customer base and also includes provisions, which would allow ADTRAN offerings to be incorporated by Nokia Siemens Networks into its customer propositions, broadening ADTRAN’s business opportunities.
As per the agreement, up to approximately 400 people, including engineering, R&D, sales and professional services employees, are expected to join ADTRAN globally.
Following the completion of the acquisition, ADTRAN expects the acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter.
ADTRAN CEO Tom Stanton said with the planned acquisition, ADTRAN will combine its success with the strength of Nokia Siemens Networks’ Broadband Access business to deliver a full portfolio of offerings to meet customer needs on a global scale.
"This strategic acquisition would position ADTRAN in key markets with an established customer base; complementary market-focused products; along with engineering, R&D, sales and professional services resources that will enable ADTRAN to take a significant step forward as one of the world’s leading communications solutions providers," said Stanton.
Nokia Siemens Networks Mobile Broadband head Marc Rouanne said they believe that the planned divestment would provide them 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," said Rouanne.