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Calix buys FTTH product line from Ericsson

26 September 2012
Optical access vendor Calix has signed two agreements with Ericsson that will boost its position in the FTTH market.  The US company has agreed to purchase the fiber access assets from the Swedish firm; a global reseller agreement was also signed under which Calix will become Ericsson’s preferred global partner for broadband access applications.


The two companies did not disclose financial details.
Calix has been exploring acquisition deals for a while. “We’ve been looking for a partner for some time and in order for us to growth internationally, in order for us to growth particularly at the Tier One accounts,” Michael Ashby, Calix’s chief financial officer, told the Deutsche Bank Technology Conference on 11 September.
The US vendor did look at the Nokia Siemens Networks deal and decided that it wasn't the right partnership, he added.  That business was sold to Adtran (see Adtran moves for NSN's fixed broadband business).
For Ericsson, the deal allows the company to focus on core products without abandoning its existing portfolio or customers.  “We believe that this partnership will provide our existing fiber access customers with world-class support and maintenance, and an expanded portfolio of access systems and software from a leading company totally focused on access,” said Jan Häglund, vice president and head of product area IP and broadband at Ericsson.
Calix expects the deal to close in October, after which it would add to its adjusted earnings.
Calix also expects to see its headcount increase as it takes on 61 employees from Ericsson’s fibre access division.
By Pauline Rigby