Less than 15 days after selling the former Motorola Solutions’ WiMAX business to NewNet Communication Technologies, Nokia Siemens Networks (NSN) announced today that Adtran Inc. (Nasdaq: ADTN) plans to acquire its fixed-line broadband access business and associated professional services and network management solutions. Financial terms of the acquisition were not disclosed.
The transaction is part of a restructuring strategy NSN announced last month, in which NSN will eliminate almost a quarter of its workforce in an effort to streamline operations and concentrate on the mobile network infrastructure and services market.
The acquisition by Adtran, provides next-generation networking solutions, would include NSN’s broadband access intellectual properties, technologies and customer base, and affect about 400 employees, including workers in engineering, research and development, sales and professional services.
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The agreement also includes provisions that would allow Adtran solutions to be incorporated by Nokia Siemens Networks into its customer propositions, broadening Adtran’s business opportunities.
Adtran expects the acquired business will be neutral in terms of diluted earnings per share for the first year and profitable afterward.
The transaction is expected to close by the end of April subject to the completion of a consultation process with certain employees and their representatives, finalization of transition services agreements and customary closing conditions.
