Infinera buying Transmode for $350m

Rob Powell/Telecom Ramblings
10 Apr 2015

Until now, Infinera's road has been an organic one. But that is coming to a close with plans announced today to acquire the Swedish packet-optical vendor Transmode for about $350 million.

The proposed purchase is still an offer rather than a done deal, but it's one that's going to shareholders having been endorsed unanimously by Transmode's board and by Pod Investment AB which holds 33% of the total shares and voting rights. So it's going to happen.

Infinera will be paying $95 million in cash and will issue some 13 million new shares, with current Transmode shareholders owning some 8.7% of the combined company.

Transmode's metro packet-optical technology will be married with Infinera's DWDM portfolio to create an end-to-end WDM offering. It's a logical pairing of both technology and customer bases that will give Infinera a talent base over in Sweden to integrate with its teams back in California. But first they'll have to jump through the hoops necessary to acquire a public company in Europe.

Consolidation among vendors has been relatively quiet lately. Might Infinera's move re-ignite the embers?

In 2014, Transmode earned about 61.5 million kronor ($7 million) from 930 million kronor ($107 million) in revenue, which was down sequentially from 2013 after a number of years of growth in what has been a tough European marketplace.

This article was authored by Rob Powell and was originally posted on

Rob Powell is founder & editor of Telecom Ramblings, which was set up in 2008. The website is dedicated to discussing trends and developments in the telecom industry.

Related content

No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.