South Korean network equipment vendor DASAN Networks has arranged to acquire a controlling stake in US vendor Zhone Technologies via a merger of subsidiary companies.
DASAN Networks and Zhone have agreed to merge subsidiaries DASAN Network Solutions and DA corp.
The merger will give DASAN Networks a 58% stake in Zhone, and the Korean vendor plans to incorporate Zhone as one of its major subsidiaries.
DASAN expects the merger to make it the market's seventh largest provider of broadband access equipment and the sixth largest provider of GPON equipment.
Zhone Technologies - which will change its name to DASAN Zhone Solutions - will aim to become a top five network solution provider by combining the strengths of both companies. The immediate goal is a 2% share of the global broadband access, mobile backhaul and enterprise markets.
“This decision was made as a global expansion plan for both DASAN Networks, and Zhone Technologies,” DASAN Networks CEO MinWoo Nam said.
“Now, by combining forces, DASAN Zhone Solutions has a strong foothold in every continent, and can reach customers all around the globe. The M&A between the two companies will become a major turning point, and the North American market will become the main market for DASAN Zhone Solutions.”