Xtera Communications, an Allen, Texas-based optical networking and services company, has acquired Azea Networks Ltd., a UK-based provider of optical networking solutions. No financial terms were disclosed. Xtera has raised over $218 million in total VC funding, from firms like The Wellcome Trust, New Enterprise Associates and Arch Venture Partners. Azea had raised over $57 million since 2002, from firms like Atlas Venture, Accel Partners, Quester Capital Management, TVM Capital and Lago Partners.
Xtera Communications announced today that it has acquired Azea Networks, a privately held company based in the UK and supplier of world-class optical networking solutions.
Azea is uniquely focused on delivering substantial capacity gains to existing undersea repeatered links. The company's optical networking upgrade solutions allow operators to exploit the full potential of their existing repeatered subsea cable assets.
With the acquisition, Xtera extends its subsea product portfolio from the unrepeatered market to include repeatered subsea applications. Xtera's unrepeatered product line provides unprecedented reach for new deployments and enables existing unrepeatered links to be upgraded to significantly higher capacities. Azea's product line provides similar benefit to repeatered upgrades and initial deployments. By upgrading their existing repeatered assets with these solutions, service providers are able to quickly achieve the capacity of a new system at a fraction of the cost of a new deployment. The consolidated company provides global service providers with an end-to-end optical transport solution covering land and sea.
“The acquisition makes sense for reasons that go beyond our complimentary subsea product portfolios. We share the same passion for customer response and support,” said Mike Hynes, who will assume the role of Executive Vice President Sales & Chief Marketing Officer for Xtera's Optical Networking division.
“Operators of existing subsea networks are experiencing a surge in bandwidth demand. Their ability to quickly respond by upgrading existing submarine cables provides them a time to market and cost advantage over operators that require new deployments. The products of the combined company allow Xtera to address a wider range of subsea solutions which should maintain the momentum the company has generated over the past year,” said Howard Kidorf, Managing Partner of Pioneer Consulting.
This acquisition is part of Xtera's planned growth as announced earlier this year. “This provides cost-effective growth to one of our core business areas and strengthens our position in the optical networking market,” commented Jon Hopper, CEO of Xtera Communications.
About Xtera Communications
Xtera Communications provides network solutions enabling communications companies to profitably deliver high-bandwidth tailored services at the lowest sustainable cost per bit. Xtera delivers value by combining sound business practice with compelling advantages in capacity, reach, simplicity and service.