Adva, Adtran to merge for last mile and 5G fibre networking

Adva, Adtran to merge for last mile and 5G fibre networking

Business news |
By Nick Flaherty

The €759m merger combines Munich-based Adva’s  metro wavelength division multiplexing, data centre interconnect, business Ethernet and network synchronization technologies with Adtran’s fibre access, fibre extension and subscriber software.

“We are in the early stages of an unprecedented investment cycle in fibre connectivity, especially in the US and Europe, fueled by the demand for last-mile fibre access and middle-mile transport to provide high-speed connectivity to homes, businesses and future 5G infrastructure,” said Thomas Stanton, chairman and CEO of Alambama-based Adtran.

The combined business will offer provide scalable, secure fibre connectivity for homes, businesses and 5G infrastructure, paired with cloud-managed Wi-Fi connectivity and applications that optimize the performance of the network and improve the customer experience.

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A key part of the deal is using its trusted supplier status to communications service providers for government networks and critical infrastructure. The combined company will continue to support all customers in its current markets and will continue to benefit from world-class R&D teams.

The combination will see $52m in cost savings within two years from supply chain efficiencies and operating model optimization.

“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 Brian Protiva, CEo of Adva. “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.”

The two companies will be combined under a new holding company which will be renamed ADTRAN Holdings, Inc. following the closing expected in Q2 or Q3 of 2022 and headquartered in the US. Adtran shareholders will own approximately 54 percent of the equity of the combined company and Adva shareholders will own approximately 46 percent, with a dual listing on the NASDAQ and Frankfurt Stock Exchange.

The business combination agreement has been approved unanimously by both boards. 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 be Executive Vice Chairman. The Board of Directors of the combined company will have nine directors, six designated by Adtran and three by Adva.;

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