AUGUST 14, 2007 -- Pannaway Technologies Inc. (search for Pannaway) has announced that it has entered into a definitive agreement to acquire the access division of TelStrat International (search for TelStrat). The division features TelStrat's Inteleflex broadband loop carrier (BLC) platform, designed to enable telecommunications providers to bridge today's circuit-switched and emerging packet-based networks to deliver converged voice, video, and data communication and entertainment services.
TelStrat is also recognized as the first company in North America to deploy next generation 2.4 GPON based FTTH from a full-service broadband loop carrier platform, according to Pannaway.
Pannaway asserts the combined entity will create the most comprehensive, fully integrated IP-based portfolio available which includes circuit switch, carrier-grade IP, and 2.4 GPON technologies across its broad range of platforms. Each of these platforms is based on the same underlying architecture designed to accelerate platform integration and provide optimal performance for all sizes of central office (CO), wire center, and remote terminal (RT) environments. This platform flexibility will enable telcos to expand their subscriber densities in each of these applications by leveraging the high-capacity MAGNM-20 chassis, the medium-capacity Inteleflex chassis, or the stackable Broadband Access Switch (BAS) family, Pannaway says.
The cash and stock transaction is expected to close by the end of August 2007, "subject to the satisfaction of customary closing conditions," and will expand Pannaway's telco customer base to over 300. As part of the transaction, Bob Carroll, founder and CEO of Telstrat, has joined the board of Pannaway Technologies. Sid Schmid, formerly general manager of Telstrat's telecommunications division, has joined Pannaway as an executive vice president and will lead the integration efforts.
Telstrat, as a result of this transaction, will focus all of its efforts on its longstanding Enterprise Business Division and its CallParrot Business Call Recording product line.
"Following its recently announced MAGNM-20 chassis announcement, this acquisition brings together the broadband access and transport technologies that telcos need to compete -- all under one roof," said Jeff Heynen, directing analyst, broadband and IPTV, at Infonetics Research. "Independent telcos prefer companies with products that can offer a range of access technologies -- from POTS to VDSL to GPON -- to support a wide range of customers and applications. The combination of Pannaway and TelStrat satisfies that demand for a common IP platform and positions Pannaway as a leading supplier to independent telcos."
"I am pleased to have found such a strong match with Pannaway and elated to be an ongoing and active member of the Pannaway board," said Bob Carroll, CEO of TelStrat. "I am impressed with the commitment of the investment team and strong balance sheet that Pannaway enjoys, underscored by its continued zero debt position. Pannaway has both the resources and the technology arsenal to continue to serve our existing customers well, while focusing on the continued development of integrated IP broadband solutions."
Mark Carpenter, president for Pannaway adds, "The various integrated technologies and broad range of platforms that come into play as a result of this acquisition strengthen the capabilities of our entire broadband solution portfolio and will become our customers' catalyst for growth as they move toward an all-IP future."
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