Transmode shareholders approve Infinera acquisition

Share this on social media:

Infinera’s offer for Swedish metro optical specialist Transmode has received a green light from the majority of shareholders, meaning that the deal will be consummated in the next few days.

As of 7 August 2015, the end of the acceptance period under the offer, shareholders representing approximately 95.8 per cent of the total number of outstanding shares and votes in Transmode, had accepted the offer.

Of the shares tendered, about 63 per cent were tendered under the cash and stock mix option and 37 per cent were tendered under the all-cash alternative. This will result in final consideration comprised of approximately 7.9 million shares of Infinera common stock and the remainder in cash.

Originally announced back in April, the transaction brings into one company a complementary set of customers, products and technologies, and create a comprehensive portfolio spanning access to long-haul (see Infinera accelerates metro strategy with $350M Transmode bid).

Infinera hopes that the acquisition will enable it to compete more effectively with the end-to-end optical suppliers, such as Alcatel-Lucent, Ciena, Huawei and ZTE. Based on data from Dell’Oro Group, the combined company will become the fifth largest supplier of WDM optical systems in terms of revenues, moving it ahead of Coriant and Fujitsu.

“The combination of Infinera and Transmode makes sense from both a market and cultural perspective and I am excited to see how the teams will build off of each other’s strengths,” said Andrew Schmitt, research director, carrier transport networking at IHS Research. “This acquisition positions Infinera to capitalize on the growing metro market as it begins a transition to 100G.”

The Transmode name will be gradually phased out, the company told Fibre Systems. “The transition won’t happen overnight. The Transmode brand carries a lot of weight with their customers,” said a spokesperson.

“The acquisition of Transmode marks a significant milestone for both companies,” said Tom Fallon, CEO of Infinera. “By bringing together two highly successful teams, we can offer an end-to-end portfolio to fully address the metro and long-haul optical transport markets. The deal accelerates our entry into the emerging 100G metro market, building upon our leadership position in long-haul and metro cloud. I believe our common philosophies of profitable growth and putting customers first will enable Infinera and Transmode to be a powerful combination in the years ahead.”

Recent News

17 September 2020

The New York and New Jersey metro region of America is to benefit from enhanced backbone connectivity thanks to a strategic partnership between Telia Carrier and ZenFi Networks.

17 September 2020

Internet exchange point (IXP), PIT Chile has deployed PacketLight’s PL-2000T transponder to connect two of its data centres in Santiago, Chile.

11 September 2020

EXFO has acquired high-speed test instrument specialist, InOpticals in a move to expand its test activity in 400G/800G lab and manufacturing markets.

10 September 2020

Italian infrastructure operator, Open Fiber is expanding its FTTH network across the country.