& 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.

 
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
February 26-28, 2018, Santa Clara Convention Center, CA
March 20-22, 2018, Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Here's Pai in Your Eye
Alan Breznick, Cable/Video Practice Leader, Light Reading, 12/11/2017
Ericsson & Samsung to Supply Verizon With Fixed 5G Gear
Dan Jones, Mobile Editor, 12/11/2017
Verizon's New Fios TV Is No More
Mari Silbey, Senior Editor, Cable/Video, 12/12/2017
The Anatomy of Automation: Q&A With Cisco's Roland Acra
Steve Saunders, Founder, Light Reading, 12/7/2017
Eurobites: Ericsson Restates Its Financials, Warns of Impairment Charges
Paul Rainford, Assistant Editor, Europe, 12/8/2017
Animals with Phones
Don't Fall Asleep on the Job! Click Here
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.

Like Us on Facebook
Twitter Feed