- Adtran Inc ADTN and ADVA Optical Networking SE ADVOF have agreed to consolidate to create a global, scaled provider of end-to-end fiber networking solutions for the communications service provider, enterprise, and government customers.
- The combined business will offer a comprehensive portfolio for homes, businesses, and 5G infrastructure with scalable, secure, and assured fiber connectivity, paired with cloud-managed Wi-Fi connectivity and SaaS applications.
- The combination offers $52 million in pre-tax annual cost synergies realized within two years post-closing.
- Adtran and ADVA will combine under a new holding company Adtran Holdings, Inc, in the all-stock transaction with a global headquarters in Huntsville, AL, and a European headquarters in Munich, Germany.
- Each ADVA share will represent 0.8244 shares in the new holding company. Each Adtran share will signify a share in the new company.
- The purchase price of €14.98 per ADVA share represents a premium of 22% based on Adtran's 3-month VWAP as of August 27. Adtran will have a 54% stake in the company, and ADVA will own the remaining 46% share.
- Adtran's Chairman and CEO, Tom Stanton, will serve in the same capacity. ADVA's CEO, Brian Protiva, will become the VC. Adtran's CFO, Mike Foliano, will remain in his current role.
- ADVA's CTO, Christoph Glingener, will serve in the same capacity. The company will be dual-listed on the NASDAQ and Frankfurt Stock Exchange.
- Price Action: ADTN shares traded lower by 15.3% at $20.80 on the last check Monday.
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