Tellabs to be acquired by Marlin Equity Partners
22 October 2013 |
An agreement has been reached for telecoms equipment vendor Tellabs to be acquired by private equity firm Marlin Equity Partners for $891 million.
The vendor has been struggling to compete with rivals Huawei, Cisco and Alcatel-Lucent and has recorded a loss for 11 straight quarters.
It has also faced a shrinking customer base, due to consolidation in the market.
In Q2 of this year it reported a net loss of $8 million, compared to a loss of $5 million in the same period in 2012.
In a statement on the company’s website, Tellabs chairman Vince Tobkin said the company made the decision to enter into a transaction with Marlin after reviewing more than 30 potential buyers, including strategic parties and financial sponsors.
“This move begins an exciting new chapter for Tellabs, our customers, partners and employees. We believe the transaction will enable us to invest in key technologies for future products, and become even more competitive as we help our customers succeed,” said Tobkin.
Tellabs claim that 80% of global communications service providers use its mobile backhaul, packet optical, Optical LAN and services solutions.
For Marlin, the acquisition builds on its takeover of the optical networks unit of Nokia Siemens Networks (now Nokia Solutions and Networks) in December 2012.