Is ADVA Optical Networking looking to buy ECI Telecom?
Thursday, August 23, 2018 at 4:54PM Is ADVA Optical Networking preparing a bid for private company ECI Telecom? The latest consolidation rumour involving the two mid-tier metro players comes after Infinera’s announcement that it is acquiring Coriant, a deal that is expected to close this quarter.
According to a source in the financial sector, ADVA wanted to acquire Coriant but failed to raise the required funds. Infinera’s successful bid for Coriant has led ADVA to consider alternatives as it looks to secure its future in a consolidating marketplace, with ECI Telecom being viewed as an attractive target.
ECI Telecom is reportedly considering an initial public offering (IPO) on the London Stock Exchange to raise $170 million. A source close to ADVA confirmed that ‘ECI is looking for a home’ but declined to comment on whether ADVA is involved. Another source close to ADVA suggested that there may be some truth in such a bid.
ADVA declined to comment.
An ECI spokesperson said the company has issued no statement regarding an IPO and expressed surprise when asked if ECI was looking to merge. The spokesperson declined to comment when asked about ADVA acquiring ECI.
