Sources: ANDA Preps IPO
That's a lot of activity around a relatively small, specialist vendor, so what makes ANDA so hot to trot after nearly 10 years on the shelf?
Well, it operates in a sector that's getting a lot of attention -- carrier Ethernet. The company sells edge equipment and was among the early vendors to catch the wave of Provider Backbone Transport (PBT). (See PBT Stars at Ethernet Expo , ANDA Unveils EtherReach 1000, and PBT: New Kid on the Metro Block.)
And it's profitable -- or at least it was in mid-2006, according to an old press release. (See ANDA Raises $10.5M.)
And despite being a relative small fry, it's sewn up deals with big-name carriers including BCE Inc. (Bell Canada) (NYSE/Toronto: BCE), BT Group plc (NYSE: BT; London: BTA), Rogers Communications Inc. (NYSE: RG; Toronto: RCI), and Verizon Communications Inc. (NYSE: VZ).
The BT deal was won through OEM partner Ciena, which uses ANDA equipment as the basis for its CN 3000 Ethernet access system. (See Ciena Takes ANDA Into 21CN.)
Ciena is interested in cementing that relationship to acquire the edge Ethernet play it's lacking, says one industry source tracking Ciena's situation.
When asked about possible acquisitions in the Ethernet access space, including a potential bid for ANDA, Ciena CEO Gary Smith told Light Reading that his company is "always looking."
While Smith would not comment on ANDA in particular, he said: "We continue to look at opportunities in [Ethernet access] and other spaces, so I wouldn't rule out possible acquisitions in the future."
Another source believes Nortel, which also happens to be an ANDA OEM partner, has made overtures as well. (See Anda, Nortel Team Up.)
A spokesperson for Nortel declined to comment "on rumors and speculation."
Still, more than one source thinks an IPO is ANDA's most likely outcome. While a sale would give ANDA's backers, which include Crimson Investment, Highland Capital Partners , and Venrock Associates , some return on their $100 million-plus investment, so would a stock exchange listing. (See ANDA Raises $10.5M and Anda Completes $70M Round.)
ANDA officals could not be reached for comment.
ANDA tried the IPO route in 2000 and filed an S-1 form with the Securities and Exchange Commission (SEC) , stating its intention to raise $100 million. Probably riding a dotcom high at the time, ANDA had logged just three quarters of notable revenues, totaling $9.4 million, and recorded losses totaling $17 million during those quarters.
That filing never went anywhere, of course. (See Anda Networks Withdraws IPO Filing.)
But it's a nostalgic read. Look who ANDA competed with at the time: Accelerated Networks, CopperCom , Jetstream, Tollbridge, parts of Lucent, and the Fibex division of Cisco Systems Inc. (Nasdaq: CSCO).
— Craig Matsumoto, West Coast Editor, Light Reading