Last-mile gear provider Calix--which went public in March with an $82.3 million IPO-has entered into a definitive agreement to acquire Occam Networks in a stock and cash transaction valued at approximately $171 million, or $7.75 per outstanding share of Occam Networks stock.
The companies said the deal would enhance the portfolio of access systems and software available to communications service providers and enabling greater broadband services proliferation at a time when communications service providers are facing major changes in technology.
The acquisition should result in more access options over both fiber and copper for communications service providers to deploy, which could boost the roll out of advanced broadband services to both residential and business subscribers, including such services as high-speed Internet, IPTV, VOIP, Ethernet business services, and other advanced broadband applications.
"By combining Occam Networks' expertise in IP and Ethernet, Calix's strength in fiber access, and both companies' experience in copper access, we believe there is a clear opportunity to further enhance the Calix Unified Access portfolio, accelerate its future innovation, and enable greater broadband deployment by communications service providers globally," Carl Russo, president and chief executive officer of Calix. "As a result of this acquisition, communications service providers can expect new innovations to the expanded Calix Unified Access portfolio that directly address the emerging needs of the broadband-connected consumer while also making these communications service providers more capitally and operationally efficient."
After the completion of the acquisition, former Occam Networks stockholders will own between 16.5 percent and 18.9 percent of the outstanding shares of Calix's common stock. Calix expects to complete the acquisition in the fourth quarter of 2010 or first quarter of 2011, subject to Occam Networks stockholder and regulatory approval.
Calix has made hay with contracts related to the Broadband Initiative Program, and saw a 50 percent increase in revenue for the second quarter to $71.7 million from $47.8 million a year ago. It was the first full quarter following the IPO.
Occam counts more than 380 communications service providers as customers.
- see this release
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