US-based DASAN Zhone Solutions, (“DZS”), a developer of fibre access transformation for enterprise and service provider networks, has announced its intent to acquire Keymile, a manufacturer of telecommunications systems for broadband access.
The acquisition, if completed, will bring together two major broadband vendors to offer global service providers freedom of choice and to advance the internet connection experience to their customers. Financial details of the deal have not been revealed.
Founded in 2002 and headquartered in Hanover, Germany, Keymile offers a range of multi-service access platforms for FTTx network architectures, including ultra-fast broadband copper access based on VDSL/Vectoring & G. Fast technology.
With this acquisition, DZS says it will further expand its footprint in the global broadband access market and gain exposure to hundreds of customers. Keymile has a strong regional presence in Europe, Latin America and other regions, which complement DZS’s footprint.
DZS stated that the transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions and required regulatory approvals. Following the completion of the deal, Keymile’s CEO, Lothar Schwemm, will continue to serve as General Manager of Keymile.
“This acquisition represents the continuation of our transformation from a leading networking equipment provider to a solutions vendor with next-generation software and services,” said Yung Kim, CEO, DZS. “As a combined DZS, we will be able to capture the broader, global market opportunity and continue to elevate our position as a leading broadband vendor and trusted advisor to prominent carriers and enterprises.”
“Much like the transformational merger of DASAN and Zhone two years ago, this acquisition represents an attractive opportunity to grow in markets where we’ve historically had a smaller footprint and to build on the momentum in our business,” added Michael Golomb, CFO at DZS. “We will execute to the same prudent playbook around sustainable, profitable growth and continue to be good stewards of capital with the KEYMILE acquisition.”
Lothar Schwemm, CEO, at Keymile, commented, “We are excited to join DZS, combine our solutions and people with the unified goal of helping our service provider and enterprise customers, through offering them greater choice among industry-leading products and solutions as our customers migrate to a connected broadband world.”
For more information, visit www.keymile.com