A leading global equipment provider has agreed to acquire Nokia Siemens Networks’ fixed-line Broadband Access business (BBA). Adtran’s planned acquisition will include the Broadband Access intellectual properties, technologies and the established customer base.
As part of the planned transaction, around 400 employees are expected to transfer to Adtran globally. The agreement also includes provisions which would allow Adtran solutions to be incorporated by NSN into its customer propositions, broadening Adtran’s business opportunities.
The planned transaction is expected to close by the end of April 2012 subject to the completion of a consultation process with certain employees and their representatives, finalisation of transition services agreements and customary closing conditions. After close of the planned transaction Adtran expects the acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter.
“With this planned acquisition, Adtran will combine its success with the strength of Nokia Siemens Networks’ Broadband Access business to deliver a full portfolio of solutions to meet customer needs on a global scale,” said Adtran CEO Tom Stanton. “Service providers around the world are seeing high bandwidth services as an integral component of their future opportunities.”
“We believe that this planned divestment would provide our existing fixed broadband access customers with a continuous high-quality service from a company focused on their needs,” said Marc Rouanne, head of Mobile Broadband at Nokia Siemens Networks. “The planned sale is in line with our new strategy to increase our focus on the mobile broadband and services market.”