& cplSiteName &

Ekinops Eyes $64M Takeover of OneAccess

Iain Morris
3/30/2017
50%
50%

French optical equipment maker Ekinops says it is in talks to acquire routing specialist OneAccess in a cash-and-stock deal that would value OneAccess at about €60 million ($64 million).

Ekinops SA clearly has its eye on OneAccess's software expertise and range of access products, which largely address routing and IP service requirements (so layer 2 and 3 stuff). Combining those with its own optical (layer 1) goodies, it believes, will give rise to what it grandly describes as a "major player in optical transport and telecom network virtualization, present from the network core to the access, with a truly international dimension."

The move certainly appears to have been fueled by the prospect of convergence between transport equipment, Ethernet services and routing as virtualization gains traction.

OneAccess's customer base also holds appeal. Ekinops has largely catered to smaller carriers, it admits, but is starting to target bigger players. OneAccess, it says, already has a "solid and established presence with very large carriers." There is very little overlap between the customer bases of the two organizations, it seems.

Ekinops didn't have much to say about its own customer base but did indicate that OneAccess now serves about 130 telcos around the world. Some 29 of those are in the "global top 100," it says.

A combined company would report annual revenues of about €76 million ($81.5 million), with OneAccess responsible for about €58 million ($62.2 million) of those (so this looks like a case of the mouse swallowing the cat). It would also have about 400 employees internationally.

It would be a complicated deal, financially, but one that would ultimately leave OneAccess shareholders holding a stake of between 20% and 25% in the new-look business.


For more NFV-related coverage and insights, check out our dedicated NFV content channel here on Light Reading.


So far, there are few details on leadership or other organizational changes that would follow a merger. Ekinops naturally hopes to realize "synergies" from the deal, but has not specified what these could be. But it does hope that a combination of its R&D and technology expertise with that of OneAccess will open up fresh business opportunities.

"By combining our technologies and our business assets, we could consolidate our positions and attack new, very high growth markets with a truly differentiated offer," said Didier Brédy, the chairman and CEO of Ekinops, in a company statement. "With the two companies' shared vision and strong software culture, we should be able to quickly create a great deal of value for our clients, employees and shareholders."

The current aim is to complete the transaction this summer.

Shares in Ekinops closed down 4.95% in Paris today, at €7.11, but remain about 44% higher than at the end of March 2016.

The company's share price soared last summer after French telecom incumbent Orange (NYSE: FTE) was reported to have included its 100G technology in network rollout plans. Ekinops also claims to have landed business with another Tier 1 player.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
James_B_Crawshaw
50%
50%
James_B_Crawshaw,
User Rank: Blogger
4/1/2017 | 7:58:32 AM
Re: Ekinops OneAccess
This looks like a great deal for EKINOPS. They made an EBITDA loss in 2015 and expectations were for the same in 2016. Actual results still pending. Ekinops is valued at about 2.7x 2016 sales which is clearly a lot higher than the 1x they are paying for Oneaccess. The difference presumably reflects growth expectations. EKINOPS grew revenue 20% last year. Still, I'd prefer Oneaccess 's 9% EBITDA margins over EKINOPS ' losses ...
Gabriel Brown
50%
50%
Gabriel Brown,
User Rank: Light Sabre
3/30/2017 | 12:54:08 PM
Ekinops OneAccess
Interesting that the price 1 x sales.

OneAccess seems to have done well with its customer count, but there are a lot of vendors, big and small, in enterprise CPE.

 
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Phone Review: Moto Z2 Play

8|22|17   |   1:54   |   (0) comments


Light Reading Mobile Editor Dan Jones reviews the Moto Z2 Play, which he calls 'a nice modern Android phone with good battery life and one of the nicest cameras' he's seen. The Moto Z2 Play is a Gigabit LTE-ready phone, but we were not able to test speeds that fast in the US.
LRTV Documentaries
Three Gets Smart(y), BT Invokes Twitter – The Recap

8|21|17   |     |   (0) comments


From Telecoms.com, a recap of the week's telecoms talking points. It's been a week of gimmicks as Three tests out a pay-as-you-go sub-brand called Smarty; Comcast
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Verizon & Friends Bust Through Gigabit LTE in the Lab
Dan Jones, Mobile Editor, 8/21/2017
Why AT&T May Dump Home Security Biz
Mari Silbey, Senior Editor, Cable/Video, 8/21/2017
Disney, iflix Team Up to Take Down Netflix
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/22/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
T-Mobile Turns On First 600MHz 4G Sites
Dan Jones, Mobile Editor, 8/16/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
Talk About a Custom-Made Workstation! Click Here
Proper ergonomics indeed.
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.