Enablence Technologies continues to build up its last mile network equipment arsenal through acquisitions. This time, the vendor has reached a merger agreement to acquire Israel-based multiservice access systems provider Teledata Networks for $50 million.
To purchase Teledata, Enablence will put up $10 million in cash and about $30 million in stock. In addition, Enablence is issuing a $10 million promissory note that's payable two years after the deal is completed.
During a conference call with analysts announcing the deal yesterday, Enablence said that purchasing Teledata would increase its yearly revenues from $135 million to $145 million. Besides being able to expand its product portfolio, what's even more significant about the deal for Enablence is a far-reaching tier 1 service customer base that spans over 55 countries, including Brazil, Chile, Costa Rica, Kazakhstan and South Africa.
"With this merger, Enablence will become a strategic player in the global broadband market, with the critical mass to meet the needs of service providers in established and emerging markets and the ability to service Tier 1 operators internationally," said Arvind Chhatbar, Chairman of Enablence in a release.
Initially a provider of planar lightwave circuit (PLC)-based FTTX modules, Enablence has been establishing itself as an integrated systems vendor through its purchases of both the former Wave 7 Optics and Pannaway Technologies.
For more:
- see the release here
-Telecompaper also has this article
Related articles:
Enablence buys Wave7 in vertical cost move
Enablence acquires Pannaway Networks
Pannaway last year acquired TelStrat's access division