Adtran and Adva merge, form global fibre networking company
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Adtran and Adva have entered into a business combination agreement to merge the two companies.
The aim is to create a global, scaled provider of end-to-end fibre networking solutions for communications service provider, enterprise and government customers. The combined business will offer a wider portfolio for providing homes, businesses and 5G infrastructure with scalable, secure and assured fibre connectivity, paired with cloud-managed Wi-Fi connectivity and SaaS applications.
The $930m merger of the two companies is also expected to create significant value for the shareholders of each, with approximately $52m in pre-tax annual cost synergies realised within two years post-closing, driven by identified supply chain efficiencies and operating model optimisation. Adtran and Adva will combine under a new holding company, which will be renamed Adtran Holdings once the transaction is closed during the second or third quarter of 2022.
Adtran Holdings will have global headquarters in Huntsville, AL and European headquarters in Munich, Germany. The new management team and board of directors will have a balanced mix of executives from both companies. 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 transition into the role of executive vice chairman. Adtran’s CFO, Mike Foliano, will remain in his current role and Adva’s CTO, Christoph Glingener, will serve in the same capacity for the combined business.
Commented Stanton: ‘We expect the transaction will create significant long-term value for both companies’ stakeholders by increasing our scale and improving our ability to serve as a trusted supplier for customers worldwide.’
Added Protiva: ‘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.’
