Calix to buy Ericsson’s GPON biz
Calix has negotiated to acquire Ericsson’s GPON business. At the same time, the two companies signed a global reseller agreement, under which Calix will become Ericsson’s preferred global partner for broadband access applications.
Neither company divulged the value of the deal. Ericsson bought into the GPON business in 2007 when it acquired Entrisphere, which had a significant customer in AT&T at the time; there was no price disclosed for that deal either.
Calix will get Ericsson’s EDA 1500 GPON solution and its complementary ONT portfolio. The agreement also calls for Calix to offer employment for up to 61 U.S.-based employees of Ericsson, as well as the transition of ongoing support of the acquired products from Ericsson to Calix.
The global reseller agreement between the two companies allows Ericsson to sell Calix Unified Access systems and software as its preferred fiber and VDSL2 access solution in 180 countries worldwide. This preferred partnership becomes effective upon the close of the acquisition and remains effective for three years.
Carl Russo, president and CEO of Calix, said the partnership “allows Ericsson to fully leverage its strengths in wireless and end-to-end services while relying on Calix to provide innovation and expertise in fixed-line broadband access.”