Apr
20
2011

Telco Systems Goes Shopping at ANDA

 

We knew ANDA Networks Inc. was up for sale, and Wednesday, the real buyer was revealed to be Telco Systems (BATM) .

The two companies announced Wednesday that Telco Systems had purchased ANDA’s “major assets and intellectual property,” suggesting that Telco Systems isn’t buying a whole company so much as it is cleaning out closets.

Telco Systems says the acquisition will add ANDA’s installed base of over 30,000 system platforms at Tier 1 carriers in North America to its worldwide installed base of service providers, mobile operators and cable MSOs.

Telco Systems was the No. 6 supplier of Ethernet-over-fiber access products in 2010, while ANDA was the No. 3 supplier of Ethernet-over-TDM access platforms, according to data from Heavy Reading.

Why this matters
Following the recent deal that combined Hatteras Networks Inc. and Overture Networks Inc. , it is clear that the Ethernet hardware market is crowded. With Ethernet access becoming more of a commodity hardware market, vendors want to stand out by providing deeper product portfolios and more sophisticated management software for access networks. (See Overture & Hatteras Gang Up on Carrier Ethernet.)

ANDA was an early leader in the next-generation carrier Ethernet access platform market with a strong focus on OAM (Operations, Administration, and Maintenance) and helping carriers expand Ethernet’s availability by enabling access over installed TDM circuits, according to Stan Hubbard, senior analyst at Heavy Reading. But ANDA had lots of competitors with deeper pockets and greater market reach, so growing the business became tougher in recent years.

“The consolidation move makes sense, and I would expect Telco Systems will be able to leverage ANDA’s work on the mobile backhaul front to its advantage,” writes Hubbard in an email to Light Reading.

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— Phil Harvey, Editor-in-Chief, Light Reading

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