ADVA (FSE: ADV) says that, ahead of its pending acquisition by ADTRAN Inc. via holding company Acorn HoldCo Inc., longtime CEO Brian Protiva will soon step away. Protiva will become vice chairman of Acorn HoldCo after a transition period that ADVA said will last “several weeks.” Current ADVA CTO Christoph Glingener will serve as the company’s CEO and CTO until the acquisition closes later this year.
The move comes as ADVA, ADTRAN, and Acorn HoldCo check off additional boxes on the way toward the transaction’s close. The companies say that the German Ministry for Economic Affairs and Climate Action (Bundesministerium für Wirtschaft und Klimaschutz, BMWK) has granted ADTRAN foreign direct investment (FDI) approval, which is the last offer condition of the sale. Acorn HoldCo subsequently has entered negotiations with ADVA to reach a domination agreement or a domination and profit and loss transfer agreement within the meaning of Sec. 291 para. 1 of the German Stock Corporation Act (Aktiengesetz).
“We are excited to have completed the regulatory approval process and look forward to closing in the coming days,” commented Tom Stanton, chairman and CEO of ADTRAN. We believe that this business combination will result in a stronger company with a differentiated end-to-end portfolio of fiber networking solutions from the metro edge to aggregation to the in-home network that positions the combined company especially well with the unprecedented level of broadband funding available.”
ADTRAN and ADVA announced the proposed merger last August (see “ADTRAN, ADVA to merge for metro to access play”). The all-stock transaction carriers an equity value of €789 million ($981 million) and an enterprise value of €759 million ($896 million).
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