Adtran announced an agreement to acquire networking services company ADVA in a deal valued at EUR789 million ($931.1 million). Under terms of the deal, each ADVA shares will be exchanged for 0.8244 shares of the stock of the new holding company, which values ADVA shares at EUR14.84 each, or a 22% premium to the three-month volume weighted average price over the past three months.
Each Adtran share will be exchanged for one share of the new holding company. The combined company will be named Adtran Holdings Inc., with its global headquarters located in Huntsville, Alabama and European headquarters in Munich, Germany.
"We are in the early stages of an unprecedented investment cycle in fiber connectivity, especially in the U.S. and Europe, fueled by the demand for last-mile fiber access and middle-mile transport to provide high-speed connectivity to homes, businesses and future 5G infrastructure," said Adtran Chief Executive Thomas Stanton. "By joining forces, our combined firm's portfolio will better position us to capitalize on this highly compelling global opportunity."
