Huntsville-based Adtran has settled an exchange offer with German optical networking firm ADVA. Adtran will be a direct subsidiary of the new entity, Adtran Holdings Inc., which will own a 65% majority of ADVA.
Shares in Adtran Holdings began trading Friday on NASDAQ and on the Frankfurt Stock Exchange.
“The effectiveness of the agreement is intended to allow both companies to fully integrate and work towards the achievement of operational synergy targets,” Adtran said in announcing the deal.
“The business combination brings together two companies with a strong history of technology innovation and customer trust. With a total addressable market of USD 13.7 billion and a joint annual R&D budget of approximately USD 240 million, the combined company has enormous revenue potential and intends to capitalize on global investment opportunities around fiber buildouts,” the press announcement added.
Tom Stanton, chairman and CEO of ADTRAN Holdings, said, “This is an exciting day for both companies. With closing now behind us, we can focus on the final steps that will allow us to fully integrate these companies, creating a driving force within the industry. We believe that the combination of our exceptional talent, industry-leading solution portfolios, and vision for innovation, positions us as a global trusted leader for service provider, government, and enterprise customers and will provide a firm foundation for our success moving forward.”
Adtran Holdings’ headquarters will be in Huntsville with a European headquarters in Munich.
