Xtera Buys Meriton

Xtera Communications, an Allen, Texas-based provider of optical networking and services, has acquired Meriton Networks Inc., an Ottawa-based metro optical networking company. 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.

 

Meriton had raised over $116 million from firms like Sierra Ventures, Primaxis Technology Ventures, Oak Investment Partners, VenGrowth, RBC Capital Partners, Investissement Desjardins, Newbury Ventures, VantagePoint Venture Partners, JVP, Nomura International and Skypoint Capital Corp.

 

PRESS RELEASE

Xtera Communications today announced the acquisition of Meriton Networks. With the addition of Meriton's award-winning Metro Optical Networking portfolio, which addresses both the Packet Optical Edge/Metro and Metro/Regional ROADM market, Xtera now offers network operators a new solution partner for end-to-end next generation optical networking solutions.

Xtera Communications is a privately held company that supplies Optical, IP performance and service solutions to terrestrial and sub-sea global service providers with development, sales and support offices around the world.

Xtera has been strategically extending both its product portfolio and global reach to complement its existing core business with a number of previously announced acquisitions. The acquisition of Meriton is the latest move in the company's announced growth strategy of strengthening its global position in the converged IP and optical communication market and provides the company with:

  A carrier class metro transport portfolio that delivers both cross-
    connect and ROADM switching, together with sub-wavelength grooming
    capabilities
  Proven R&D expertise in innovative Packet Optical Networking/Carrier
    Ethernet Transport and ROADM technology
  A global Tier 1 and Tier 2 service provider customer base
  Increased global footprint in the areas of R&D, sales and support
    

Xtera is now uniquely positioned to help network operators meet the explosive growth in Ethernet and IP traffic. The resulting portfolio greatly enhances the company's ability to provide an agile end-to-end optical network while allowing service providers to realize the promise of lower operating costs and increased management efficiencies.

“As with our previous acquisitions, Meriton brings advanced technologies, additional customers, and geographical diversity, along with improved economies of scale, across our business,” said Xtera CEO Jon Hopper. “With this acquisition, Xtera Communications has moved significantly closer toward our goal of being a leading provider of converged Ethernet/IP and Optical Transport solutions.”

“Optical networking is showing significant growth in all markets across the globe,” said Michael Howard, Principal Analyst at Infonetics. “The continuing traffic demands for increased capacity are driving the need for new platforms that converge packet and optical layers to reduce cost and complexity in next generation transport networks. Xtera's acquisition of Meriton Networks creates a wide product portfolio that provides reach from the metro access edge through the ultra long haul.”

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. Further information is available online at www.xtera.com.