ADTRAN To Boost Customer Relationship With SmartRG Buyout
Zacks Investment Research | Dec 06, 2018 09:07PM ET
In order to augment its broad portfolio of software network solutions globally, ADTRAN, Inc. (NASDAQ:ADTN) recently announced that it has acquired SmartRG Inc. — a Vancouver, WA-based company. It develops and provides carrier-class, open-source connected home platforms and cloud services for broadband service providers. The terms of the deal were not disclosed. The buyout is part of ADTRAN’s commitment to help its broadband customers to lower operating expenses, and simplify and scale networks, while enhancing revenues by creating long-lasting relationships with them.
Notably, SmartRG has more than 3 million devices in service and above 1.3 million devices under management in North America, the Caribbean and South America. The company expects to drive growth through its software solutions as more customers shift from proprietary options to SmartOS — its open-source, cloud-enabled solution suite. SmartRG’s executive team and employees will help to ensure a seamless transition and enhanced market share growth, while leveraging ADTRAN’s global footprint. The acquisition positions ADTRAN and SmartRG well to capitalize on growing global market trends.
Both companies have delivered solutions based on open, programmable and scalable designs that interoperate and manage other devices as the market shifted toward Software-Defined Networking. The combination will enable broadband providers to improve subscriber experience from the access network into any home or business. ADTRAN Mosaic and Smart OS provide end-to-end management and orchestration solutions from cloud edge to subscriber edge.
The fiber access market is anticipated to grow exponentially, driven by greater broadband requirements for connected homes and businesses. According to IDC’s Worldwide Quarterly Smart Home Device Tracker, all categories of smart home devices are expected to deliver double-digit growth through 2022. ADTRAN remains focused on being a top global supplier of access infrastructure and related value-added solutions from the cloud edge to the subscriber edge. We believe that such acquisitions will help the company boost its leadership position.
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