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ADTRAN and ADVA have agreed to merge after a long courtship.
The two CEOs have spoken regularly over the years but several developments spurred them to act.
Tom Stanton, ADTRAN CEO
The merger combines ADTRAN’s expertise in access technologies with ADVA’s metro wavelength-division multiplexing (WDM) know-how to create a ‘metro-core-to-door’ company with revenues of $1.2 billion.
As such, the merger promises to double their size and networking skills. Yet the stock market appeared underwhelmed by the announcement, with ADTRAN’s shares down 16% for the rest of the week after the deal was announced.
Market research analysts, however, are more upbeat.
“ADTRAN and ADVA have a better path forward together than separately,” said John Lively, principal analyst at LightCounting Market Research, in a research note.
The deal is expected to close in the second or third quarter of 2022 but only after several hurdles are overcome in what is described as a complex deal.
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