Advanced Fibre Communications to acquire AccessLan Communications
March 27, 2002--Advanced Fibre Communications Inc. today announced that it has agreed to acquire privately held AccessLan Communications Inc., developer of carrier-class, multiprotocol network equipment designed for large-scale networks.
Advanced Fibre Communications Inc. today announced that it has agreed to acquire privately held AccessLan Communications Inc., developer of carrier-class, multiprotocol network equipment designed for large-scale networks.
AFC is acquiring AccessLan for its next-generation technology that addresses ATM switching, Ethernet, PON, DSL, and advanced IP markets. This technology is important to collapsing multiple network elements into a single, cost-effective platform for next-generation networks. AFC's new platform, the Telliant 5000, enables carrier network migration from ATM to IP networking technologies.
Per the agreement, AFC will acquire all outstanding shares of AccessLan stock that it does not already own for approximately $43 million in cash and assume approximately $4 million in liabilities. Additionally, all options to purchase shares of AccessLan common stock will be assumed by AFC and will become options to purchase approximately 1.2 million shares of AFC common stock. AFC currently holds a minority interest in AccessLan. This transaction will be accounted for as a purchase and is expected to close in the second quarter of AFC's fiscal 2002. The transaction has been approved by the board of directors of both companies, and is subject to customary closing conditions.
"We believe this acquisition is a key strategic move for AFC," contends John Schofield, chairman, president and chief executive officer of AFC. "It provides us with a powerful, central office broadband platform that has strong advantages over legacy products in both cost and performance.
AccessLan Communications Inc. (San Jose) targets Local Exchange Carriers, Inter-Exchange Carriers, and Independent Operating Companies with its next-generation approach to supporting mass deployment of broadband services.
Headquartered in Petaluma, Calif., Advanced Fibre Communications Inc. designs and manufactures broadband access solutions. For more information, visit the company's Web site at www.afc.com.