Calix buys Occam Networks
Calix is acquiring Occam Networks for $171 million.
The purchase buys Calix a stronger position in the IP market in general and the Ethernet market in particular, at the expense of some overlap in PON product lines between the two.
Both companies serve mostly Tier 2 and Tier 3 service providers.
The $171 million works out to approximately $7.75 per outstanding share of Occam Networks' stock. Calix expects to complete the acquisition in the fourth quarter of this year or first quarter of 2011. Following completion of the purchase, one non-management director from Occam's board will join Calix's board.
Carl Russo, president and chief executive officer of Calix, said: "As a result of this acquisition, communications service providers can expect new innovations to the expanded Calix Unified Access portfolio that directly address the emerging needs of the broadband-connected consumer, while also making these communications service providers more capitally and operationally efficient."