CACS 4 Sale

5:00 PM -- From The Philter's I Told Ya So file, Carrier Access Corp. (Nasdaq: CACS) today announced it was changing CEOs and "exploring strategic alternatives."

Earlier I noted that Huawei Technologies Co. Ltd. had sent the company a letter of intent. Shortly thereafter, the Carrier Access board met to go over all the decisions that are being announced today:
Allen Snyder has been promoted from the position of chief operating officer to chief executive officer and president, effective August 1. Allen joined Carrier Access as COO in November of 2006. His promotion to CEO adds financial and legal reporting to his current responsibilities. Roger Koenig, CEO and co-founder, will continue as Chairman of the Board and devote his time to evaluating the Company's strategic alternatives with the board and Jefferies Broadview.

Nancy Pierce, the Carrier Access corporate development officer and co-founder, will retire from her operational position and continue as a Director of the Company. Pierce will continue her work to evaluate the Company's strategic alternatives as a member of the board.

You'll recall the husband and wife team of Roger Koenig and Nancy Pierce together owned about 38 percent of Carrier Access as of April 2007, and were largely believed to be the two individuals that could quash any potential suitor's interest in the company.

Now they're stepping aside from their day-to-day operations roles and helping the bankers evaluate the company's future.

Carrier Access shares still trade around $4.80, about half the company's 52-week high.

— Phil Harvey, Barely Managing Editor, Light Reading

mikhailgoldman 12/5/2012 | 3:04:39 PM
re: CACS 4 Sale Assuming that the company won't sell to a strategic buyer like Huawei, or Tellabs, who could be a strategic partner under a merger of equals scenario? Could merging with Zhone Technologies make sense? What about NMS Communications (http://www.nmscommunications.c...)?

You guys are technology analysts... What makes the most sense here in terms of technological synergies?
DCITDave 12/5/2012 | 3:04:37 PM
re: CACS 4 Sale The tech makes the most sense in a place like Huawei or Nokia Siemens. Maybe Tellabs. Not sure about NMS. Zhone? Yeah, I guess they can find synergy with just about anything with an "on" switch and a fan.

Why don't you think the company will go to a strategic buyer?

Also, what's your thought on whether the firm will go private instead?
mikhailgoldman 12/5/2012 | 3:04:37 PM
re: CACS 4 Sale As far as strategic buyers, I agree with the analyst: Tellabs makes the most sense because most of the integration is already done. Plus, Tellabs can easily sell its 5500 system integrated with CACS FlexEndgine technology into the existing customers such as ATT, Verizon and international. Plus T-Mobile is coming up. Huge opportunity if executed right!! But don't rule out NSN, Huawei, Ericsson, NT and others.

I am not saying that a strategic buyer won't take out CACS but as a shareholder I want to think of a plan B. I think there exists a high probability of a potential merger with a competitor such as NMS or Zhone backed up by private equity. But a buyout from a strategic buyer makes the most sense.
Sign In