Telecom equipment maker Calix will acquire a rival, Occam Networks, for $171 million.
The deal, a cash and stock transaction, means the purchase of Occam shares at a 47 percent premium, and continues a recent string of acquisitions dotting the broader telecom vendor and provider space.
Both Calix and Occam make access equipment for use by service providers. Calix's largest customer is CenturyLink, which earlier this year agreed to acquire Qwest Communications in a $10.6 billion blockbuster.
Calix expects to complete the acquisition by the first quarter of 2011, subject to approval by Occam Networks stockholders. Under the agreement, one non-management member of the current Occam Networks board is expected to be appointed to Calix's board. Calix offered no further details on executive moves.
"The rate of change is accelerating for communications service providers, and Calix is fully committed to providing our customers with the broadest portfolio of innovative access options to adapt to this changing world," said Carl Russo, president and CEO of Calix, in a statement. "By combining Occam Networks' expertise in IP and Ethernet, Calix's strength in fiber access, and both companies' expertise in copper access, we believe there is a clear opportunity to further enhance the Calix Unified Access portfolio, accelerate its future innovation, and enable greater broadband deployment by communications service providers globally."
Calix earlier this year completed an $82 million initial public offering, with shares rising 16 percent in its debut on March 24.