Infinera on Wednesday announced it has made a cash and stock offer to acquire Transmode that values the company at US$350 million.
The U.S. network equipment maker is offering 300 Swedish kronor in cash plus 4.705 Infinera shares in exchange for every 10 Transmode shares, which implies a SEK109-per-share (€11.7/$12.6) purchase price.
The Transmode board has recommended that shareholders accept the offer. The Swedish firm’s largest shareholder Pod Investment, which has a stake of around 33%, has indicated that it is in favour of the acquisition.
Infinera and Transmode essentially have complementary technologies and customer bases. The former’s core business is in long-haul and metro cloud markets in North America while the latter primarily focuses on metro applications and has a European customer base.
"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," said Infinera CEO Tom Fallon.
"Further, the combination ensures we are well positioned to be a leading provider in the metro aggregation market as this market transitions to 100G," he added.
"Drawing on the complementary and synergistic skill sets of Infinera and Transmode, the combined company will be able to compete more effectively, develop differentiated and advanced products, and provide greater value to its most important stakeholders – customers, investors and employees," said Karl Thedéen, CEO of Tra nsmode.
Infinera expects the offer to close in the third quarter of its financial year, that is, by the last Saturday in September.
