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Infinera to buy Transmode for USD 350 mln
2015-04-09 08:50:00| Telecompaper Headlines
(Telecompaper) Infinera announced an agreed offer to acquire Transmode for USD 350 million. Sweden-based Transmode offers a range of metro core, edge and access equipment that will allow Infinera to address the entire end-to-end WDM market and to capitalize on the growth in 100G metro aggregation deployments. Transmode's products cover 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 mainly active in long-haul and metro cloud, particularly in North America. Transmode shareholders will receive SEK 300 cash and 4.705 Infinera shares for every 10 shares of Transmode held, valuing the company at SEK 109 per share. This is a 46 percent premium on Transmode's average share price in the past six months. Infinera will pay a total USD 99 million cash and issue 13 million new shares. Transmode shareholders will own 8.7 percent of the combined company. Transmode's board supports the bid and its largest shareholder Pod with 33 percent of shares also agreed to tender its stake. The takeover is expected to close in the third quarter.
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Category:Telecommunications