ADTRAN (Nasdaq: ADTN) is bolstering its own wireline broadband access powers by purchasing Nokia Siemens Networks' (NSN) fixed line Broadband Access business (BBA), including its associated professional services and network management solutions.
Broadband access has continued to be a strong sales performer in ADTRAN's carrier division. In Q3, broadband access segment grew 93 percent over Q3 2010.
Under the terms of the deal, ADTRAN will also get NSN's Broadband Access intellectual properties, technologies and well-established domestic and international customer base.
Upon completion of the acquisition, which the two companies expect by the end of April 2012, up to 400 people, including engineering, R&D, sales and professional services, will become part of ADTRAN's global workforce. In addition, ADTRAN's solutions will be incorporated by Nokia Siemens Networks into its customer propositions.
ADTRAN believes that the acquisition acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter.
While the move clearly represents NSN's increased focus on the mobile wireless market, the deal has a number of implications for ADTRAN.
The acquisition of NSN's BBA unit instantly enhances its professional services power, something that's been key to winning not only large domestic Tier 1, but also with its growing base of Tier 2-3 ILEC customers. Also, ADTRAN instantly gains an even larger set of resources to advance its growing international customer base, which has been cited by the company's leadership as a key focus area in 2012.
To date, ADTRAN has made progress in the international market, winning deals with the likes of Korea Telecom, Telmex and Telstra (ASX: TLS.AX). By purchasing NSN's broadband unit, it will gain increased customer presence in Europe, Middle East, Africa, India, Russia and Asia-Pacific.
- see the release
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