Mergers and Acquisitions is picking up again, sweet some money to be made, please.

ADTRAN Inc. (USA - NASDAQ: ADTN) and ADVA have announced they have agreed to merge. ADTRAN will acquire ADVA in an all-stock transaction with an equity value of €789 million ($981 million).

The resulting company, ADTRAN Holdings Inc., will have combined revenues of $1.2 billion.

74% of ADTRAN’s customers are in North America and 21% in Europe, whereas 
ADVA’s percentages for the two regions are 29% and 62%.

Analysts appeared to appreciate the argument. “I think the merger makes sense because the two companies do not overlap on product. So, it won’t be value destructive like a merger among companies with similar products,” commented Jimmy Yu, vice president optical transport market research at Dell’Oro Group. “Also, with ADTRAN’s sales into Deutsche Telekom (DT) for access and ADVA’s sales into DT for optical, the current ADVA headquarters makes a great unified sales and customer support center to serve one of their biggest customers. Also, this helps ADVA’s optical business in North America, one of the company’s best region of sales. It will give ADVA a stronger presence in North America with a larger sales and support organization.”

https://www.lightwaveonline.com/business/mergers-acquisitions/article/14209526/adtran-adva-to-merge-for-metro-to-access-play

Cheers