ADTRAN to acquire Nokia Siemens Networks fixed-line broadband business

Nokia Siemens Networks is wasting no time executing on its decision to restructure its business (see “Nokia Siemens Networks refocus could cost 17,000 their jobs”). The company says it has reached agreement to sell its fixed-line broadband access business to ADTRAN, Inc. (NASDAQ:ADTN).

The companies said in a joint statement that the transaction is expected to close by the end of April 2012. The price of the deal, which includes the fixed-line broadband access business and associated professional services and network management expertise, was not disclosed.

The planned acquisition would include related intellectual properties, technologies, and the established customer base. Approximately 400 people, including engineering, R&D, sales, and professional services employees, are expected to transfer to ADTRAN globally. The agreement also includes provisions that would allow ADTRAN’s existing product range to be incorporated into Nokia Siemens Networks’ portfolio.

The deal is subject to the completion of an employee consultation process, finalization of transition services agreements, and customary closing conditions. After close of the planned transaction ADTRAN expects the acquired business will be neutral to diluted earnings per share for the first full year and accretive thereafter.

“Service providers around the world are seeing high-bandwidth services as an integral component of their future opportunities,” said ADTRAN CEO Tom Stanton. “This strategic acquisition would position ADTRAN in key markets with an established customer base; complementary market-focused products, along with engineering, R&D, sales, and professional services resources that will enable ADTRAN to take a significant step forward as one of the world’s leading communications solutions providers.”

“We believe that this planned divestment would provide our existing fixed broadband access customers with a continuous high-quality service from a company focused on their needs,” said Marc Rouanne, head of mobile broadband at Nokia Siemens Networks. “The planned sale is in line with our new strategy to increase our focus on the mobile broadband and services market.”

Nokia Siemens Networks has already sold its microwave backhaul unit to DragonWave, and has agreed to a deal to sell its WiMax business to NewNet Communication Technologies. However, there’s still plenty of work to be done if the company is to reduce its head count by 17,000 – or almost one-quarter of its 75,000 workforce – as it shifts its focus to mobile broadband and attempts to cut operating expenses by €1bn over the next two years.

For more information on FTTx/access systems and suppliers, visit the Lightwave Buyer’s Guide.