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ADTRAN and ADVA have announced a merger where ADTRAN will acquire ADVA in an all-stock transaction, creating a company with combined revenues of $1.2 billion. The new company named ADTRAN will combine the broadband access portfolio of ADTRAN and the metro and Carrier Ethernet businesses of ADVA. The companies expect the deal to close in either the second or third quarter of 2022.

“The merger makes a lot of sense as there is very little overlap in products or markets but a lot of complementary technology,” added Scott Wilkinson, lead analyst, networking components at Cignal AI. “The lack of overlap means that the overall market will likely not change much in the short term, but the combined company’s size could allow it to win over operators long term who prefer to buy from billion-dollar vendors. What has yet to be proven is if sales of PON can translate to sales of optical (and vice versa), as end-to-end sales are challenging.”

Lightwave: ADTRAN, ADVA to merge for metro to access play