Calix buys Ericsson’s fibre assets

US access solutions provider Calix has signed a definitive agreement to acquire the fibre access assets of Swedish telecoms equipment vendor Ericsson for an unspecified amount.

The transaction is expected to be concluded in the fourth quarter of 2012, and adds Ericsson’s high-capacity GPON solutions to Calix’s leading access portfolio. Expected to be included in the deal are the Ericsson EDA 1500 GPON solution and its complementary ONT portfolio.

The agreement calls for Calix to offer employment for up to 61 US-based employees of Ericsson, as well as the transition of ongoing support of the acquired products from Ericsson to Calix.

Calix will also become Ericsson’s preferred global partner for broadband access applications for three years, while Ericsson gains the right to sell Calix Unified Access systems and software as its preferred fiber and VDSL2 access solution in 180 countries worldwide.

Ericsson continues to perform solidly despite the tough economic climate: the company posted net profits of SEK 1.2bn (€140mn) for the second quarter of this year, down 63% from one year earlier but still placing it comfortably in the black.

Calix meanwhile struggles to turn a profit: the company posted a GAAP net loss of US$ 7mn for the first quarter of this year on revenues of US$ 79mn.

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