Infinera makes offer for Transmode
09 April 2015 |
Infinera has made an offer for metro packet-optical networking solutions provider Transmode.
The total value of the bid is approximately $350 million, which consists of cash and shares.
Under the terms of the offer, for every 10 shares of Transmode, shareholders will receive SEK 300 ($34.5) in cash and 4.705 Infinera shares.
Transmode’s board of directors is said to have unanimously recommended its shareholders to accept the offer. The company’s largest shareholder Pod Investment, which owns a 33% of total shares and voting rights, has accepted the offer subject to customary conditions.
If the acquisition goes ahead, it will provide Infinera with access to Transmode's suite of metro core, edge and access solutions. This will give Infinera an offering across long-haul, metro and cloud, which it claims will address the entire end-to-end DWDM market.
"The acquisition of Transmode accelerates the realisation of our long held vision of providing an end-to-end portfolio of world class optical transport products. Further, the combination ensures we are well positioned to be a leading provider in the metro aggregation market as this market transitions to 100G," said Tom Fallon, CEO of Infinera.
"Transmode's services-rich metro platforms, broad European customer base and profitable business model are naturally complementary to Infinera. We are also excited to have the Transmode team join Infinera and leverage our shared cultures of customer first, product excellence and profitability."
Transmode's products provide application specific features including broadband aggregation, mobile backhaul and fronthaul along with business Ethernet MEF certifications. Transmode is positioned primarily in metro applications in Europe, while Infinera is historically positioned in long-haul and metro cloud, particularly in North America.
The offer is expected to close in the third quarter of Infinera's fiscal year 2015, subject to certain closing conditions.
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