- ADTRAN (NASDAQ:ADTN) and ADVA (OTCPK:ADVOF) enter into an agreement to combine the two companies and form a global fiber networking innovation leader with combined revenue of $1.2 billion. The deal is expected to close in the second or third quarter of next year.
- Under the all-stock transaction, each ADVA share will be exchanged for 0.8244 shares of common stock in the new holding company, which is equivalent to €14.98 per ADVA for an equity value of €789 million, and an enterprise value of .
- ADTRAN shareholders will own 54% of the combined company and ADVA holders will have the remainder.
- The combined company, which offers over $50 million in annual run-rate cost synergies, will be dual-listed on the NASDAQ and the Frankfurt Stock Exchange. The holding company will be named ADTRAN Holdings.
- ADTRAN shares were halted ahead of the news. As of 10:00 a.m., ADTRAN is trading down 10.4%.
- Upcoming catalyst: ADTRAN is among the presenters at the two-day two-day Jefferies 2021 Virtual Semiconductor, IT Hardware and Communications Infrastructure Summit that kicks off tomorrow.