Infinera to Acquire Transmode for Metro Packet-Optical

Infinera announced an offer to acquire Transmode (Nasdaq: TRMO) for approximately $350 million to accelerate its entrance in the 100G metro market. For every 10 shares of Transmode, shareholders will receive SEK 300 in cash and 4.705 Infinera shares.

Transmode, which is headquartered in Stockholm, Sweden, is a leading supplier of metro packet-optical networking in EMEA. Its product portfolio includes packet-optical networking products based WDM and Ethernet Layer 2 technology as well as a complete network and services management suite. Transmode’s flagship M-Series platform is used in mobile transport, Triple-play Backhaul and IPTV, Business Ethernet, Enterprise Networks, Metro Regional Core Networking and Wholesale applications. Its TG-Series is a passive optical WDM platform designed for access applications such as Fiber To The Curb (FTTC), Fiber To The Building (FTTB) and high-security access networks. Its TS-Series is a CWDM/DWDM platform for enterprises and private/public institutions. Transmode’s customer base includes 3, DT, Tele2, Virgin Media, surftelecoms, Telenor, etc.

Infinera said the Transmode’s product set and customer base complements its entrance into the 100G metro aggregation market. Infinera’s newly introduced photonic integrated circuits (PICs) will be integrated into Transmode’s metro edge portfolio.

“The acquisition of Transmode accelerates the realization of our long held vision of providing an end-to-end portfolio of world class optical transport products. Further, the combination ensures we are well positioned to be a leading provider in the metro aggregation market as this market transitions to 100G,” said Tom Fallon, CEO of Infinera. “Transmode’s services-rich metro platforms, broad European customer base and profitable business model are naturally complementary to Infinera. We are also excited to have the Transmode team join Infinera and leverage our shared cultures of customer first, product excellence and profitability.”

Infinera also disclosed that its Q1 financial results are expected to be slightly ahead of expectations.

Separately, Transmode  disclosed preliminary results for Q1, saying its Q1 revenue will be in the range of SEK 285-290 m (SEK 231.3 m), representing a growth of 23-25% compared to the corresponding quarter the previous year. Preliminary operating profit for the first quarter 2015 is expected to be in the range of SEK 46-51 m (SEK 21.5 m).

http://www.infinera.com/j7/servlet/NewsItem?newsItemID=450

http://www.transmode.com/