|
Networks & Infrastructure
Tellabs acquires WiChorus
3G/4G mobile packet core helps advance mobile Internet
by TelecomEngine Newsdesk
Tellabs, a provider of mobile backhaul network products, is set to acquire WiChorus of San Jose, Calif. The combination will create an advanced 3G/4G mobile network that hopes to revolutionize the mobile Internet, deliver new applications to generate revenue and simplify networks to achieve significant savings for mobile carriers.
“As we expand logically into an adjacent market with the SmartCore platform, Tellabs and WiChorus can help mobile customers succeed by revolutionizing the mobile Internet,” said Robert W. Pullen, chief executive officer (CEO) and president of Tellabs. “Our customers are excited about this combination, since they can deliver rich, distinctive personalized user experiences such as mobile Internet, video and commerce. This move complements, differentiates and advances our growth solutions portfolio including Tellabs Mobile, Optical and Business Solutions.”
The acquisition adds WiChorus’ SmartCore mobile packet core platform, the only currently available platform that is purpose-built for 4G, LTE and WiMax, with support for 3G. The SmartCore platform includes a full range of mobile IP products for applications including GGSN, LTE and WiMax. It offers eight times more throughput, four times more simultaneous Internet connections and active users, compared with competitive platforms in gateway applications.
The SmartCore platform combines application analytics with a mobile core gateway for improved traffic engineering and network optimization which enables customers to analyze and monetize more than 400 of the top mobile Internet applications. The SmartCore platform claims new delivery and differentiated applications such as Internet offload and distributed LTE gateway.
Under the terms of the transaction, which was approved by both companies’ boards of directors, Tellabs will pay approximately $165 million in net cash for WiChorus. The transaction is expected to be dilutive to Tellabs’ earnings in 2010, then additive to Tellabs’ non-GAAP earnings in 2011 and beyond. Non-GAAP earnings exclude amortization associated with acquired intangibles and other purchase accounting adjustments.
“WiChorus SmartCore is the leading packet core solution in the industry, providing the highest performance and built-in optimization and monetization capabilities,” said Rehan Jalil, president and CEO of WiChorus. “The combination of the world’s most advanced packet core with Tellabs’ IP mobile backhaul solution and intelligent network manager creates a winning combination and a comprehensive mobile Internet portfolio. The combination will enable service providers to enhance mobile users’ experience, deliver new revenue-generating applications and achieve savings.”
On completion of the transaction, Rehan Jalil will head a newly formed Tellabs IP and mobile Internet group, as senior vice president, reporting to Pullen. The transaction is subject to customary closing conditions and regulatory reviews. It is expected to close within the next several months.
Prior to close, Tellabs and WiChorus will continue to operate as separate companies. The combined company will employ about 3,250 people.
|
