& cplSiteName &

Infinera-Transmode Closing Imminent; Karl's in Charge... of Metro

Dan O'Shea
8/14/2015
100%
0%

Infinera's Transmode acquisition should close within a week, following news that about 96% of the Swedish company's shareholders had accepted Infinera's bid. With 37% of the approving shareholders accepting a Door No. 2 "capped cash" offer that Infinera created as an alternative to its original cash-and-stock offer, Infinera's decision last month to give Transmode investors that choice is looking pretty smart.

Infinera Corp. (Nasdaq: INFN) CEO Tom Fallon, in an interview with Light Reading, declined an invitation to speculate whether the outcome might have been different if the California vendor hadn't allowed Transmode Systems AB shareholders to choose between cash-and-stock and just cash. "It's hard to say," Fallon said. "I was surprised by how many people took the cash, quite frankly."

Last month, Infinera said it already had seen its original mixed cash-and-stock offer accepted by 54% of Transmode shareholders, an encouraging figure, given that the acceptance period hadn't even started yet. However, such acquisitions in Sweden require acceptance by at least 90% of shareholders, and Infinera moved to heighten its chance of a successful buyout by announcing a "capped cash" option. (See Transmode Shareholders Approve Infinera Takeover and Infinera Makes $350M Offer for Sweden's Transmode.)

"There was a premium baked into the stock offer, but I think when we listened to the concerns they had and came back with an alternative offer, they came away with the impression that we were interested in what was good for Transmode shareholders," Fallon said. "That could have influenced how they felt about the acquisition. Swedish investors have sometimes been jaundiced about American companies buying Swedish companies and then shutting down or trimming [costs from them]."


Want to know more about all things optical? Check out our dedicated optical content channel right here on Light Reading.


But shutting and cutting is not what Infinera has in mind for Transmode. "We're buying this company for revenue synergies, not cost synergies," Fallon said. It's unclear for now whether or not Infinera will implement any layoffs, but Fallon said Infinera is more likely to hire more people into the Transmode part of its operation over time, and that where redundancies might currently exist, they could be dealt with by moving people into different jobs.

The acquisition is due to close by or on August 20, and upon completion, Transmode CEO Karl Thedeen will become the managing director of Infinera's new Metro Business Group, which will include both the Transmode operations and Infinera's own fledgling metro assets. While Infinera is still targeting this fall to announce a new metro aggregation product, much of what happens from deal close forward with Infinera's metro ambitions will be up to Thedeen. "Karl will decide what we carry forward, and he will be held accountable to win in the metro," Fallon said. "We're not going to tell him what he can and can't do to go do that."

Also, Fallon said one of the first agenda items after the companies combine will be to map out how they support customers during the transition. "As companies integrate and merge, you have to start with the customers," Fallon said. "What you want them to see is that they're dealing with one company. We'll start with [integrating] IT systems and operations systems." Early on, the companies also will set up integrated network management to homogenize the experience of customers with both Infinera and Transmode gear in their networks.

"Then, over time [we'll] look at how we do more product integration," Fallon said. "We'll say, 'Listen, Karl, in addition to what you're so good at using off-the-shelf technologies, here is a whole big toolbox of cool new technologies, whether it's coherent or PICs or other things we have, and go continue to figure out how to build the world's best metro platforms."

It turned out to be a busy week news-wise for both Infinera and Transmode. Infinera also announced this week that it continues to see its DTN-X platform deployed in Windstream Communications Inc. (Nasdaq: WIN)'s long-haul network to support the company's 100G rollout. In addition Transmode announced a deal with Canadian carrier Sogetel. (See Windstream Continues 100G Expansion With Infinera and Sogetel Deploys Transmode's TM-Series Gear.)

— Dan O'Shea, Managing Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
sunnyydv27
50%
50%
sunnyydv27,
User Rank: Light Beer
4/6/2017 | 7:10:09 AM
Re: Cloud Xpress and future roadmap
You can buy unlimited sale is on it,s free safe 2kvccodes.com  and will unlock the world of PC gaming for you.
Assignment Help
100%
0%
Assignment Help,
User Rank: Light Beer
3/2/2017 | 6:58:35 AM
Formidable
This should prove to be a formidable combination of companies and talents.

Assignment Help
BennyBill
50%
50%
BennyBill,
User Rank: Light Beer
2/10/2017 | 1:57:44 PM
Re: Formidable
That is it actually tru. I offer assignment help services and recently did a long reaserch paper on Cloud Xpress data center and I for think the fall is certain
Thi?tk?k48564
50%
50%
Thi?tk?k48564,
User Rank: Light Beer
11/29/2016 | 1:40:45 AM
Formidable
The Cloud Xpress data center interconnect platform still will fall under the direction former telco exec Stu Elby and his data center group within Infinera.
rgrutza600
50%
50%
rgrutza600,
User Rank: Light Sabre
8/17/2015 | 12:16:41 PM
Formidable
This should prove to be a formidable combination of companies and talents.
DOShea
100%
0%
DOShea,
User Rank: Blogger
8/14/2015 | 1:26:30 PM
Cloud Xpress and future roadmap
The Cloud Xpress data center interconnect platform still will fall under the direction former telco exec Stu Elby and his data center group within Infinera.

Aside from existing products and Infinera's upcoming metro aggregation product announcement, which we're guessing will happen at an Infinera event in early October as that was the forum for the Cloud Xpress unveiling last year, Fallon also said Infinera had been doing some initial architectural work for other products on its roadmap, but "We will shelve those plans for now, hand that work to Karl, and he will decide what he would like to carry forward vs what he would like the Transmode stuff to carry forward. Most likely our and Transmode's roadmaps that were out in the future will be converged into a new roadmap that takes the best of the best."

Karl's going to be a busy man...
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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 Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
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
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.