(Bloomberg) — Adtran Inc. of the U.S. offered to buy German telecommunications equipment maker ADVA Optical Networking SE as countries around the world invest in fiber rollouts.
The all-stock transaction would value ADVA at about 789 million euros ($930 million) based on a price of 14.98 euros a share, according to a statement on Monday. That would be a 22% premium to the average of the last three months. Adtran shareholders would own about 54% and ADVA investors 46% of the combined entity.
The transaction, which is backed by ADVA management and supervisory boards, aims to tap the global rush to build out high-speed internet to homes and businesses, especially in the U.S. and Europe. The deal would create a company with $1.2 billion in revenue and save an estimated $50 million annually, the companies said.
ADVA shares rose 16% in German trading.
The combined firm will be named Adtran Holdings Inc. with headquarters in Huntsville, Alabama, and be dual-listed on the Nasdaq and Frankfurt Stock Exchange, according to the statement.
Bank of America Corp. worked with Adtran while Jefferies Financial Group Inc. advised Adva, the statement says.
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