Ekinops Completes the Acquisition of OTN Technology From Padtec

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Jul 19, 2019, 03:22 ET

PARIS, July 19, 2019 /PRNewswire/ -- Ekinops (Euronext Paris: EKI) (Euronext Paris: FR0011466069), a leading supplier of telecommunications solutions for telecom operators, today completes the acquisition of the OTN-Switch (Optical Transport Network) platform developed by Padtec, an optical communications system manufacturer based in Brazil.

Target major operator core networks to triple optical transport business within 5 years

OTN technology is used to switch data traffic over optical fibers, significantly optimizing network bandwidth utilization. The OTN technology will allow Ekinops to meet growing market demand for this type of technology. It is estimated that over 40% of the optical network market uses OTN solutions.

This strategic acquisition will enable the Group to become a leader in this field and deliver additional revenue from new OTN products starting in 2020. By offering a global OTN/DWDM solution for optical networks product line, Ekinops will be able to target the major operator core networks market segment with the objective to triple its optical transport product sales within 5 years.

Main transaction terms

Ekinops has acquired the advanced OTN technology and an R&D team comprising 25 engineers based in Campinas, near Sao Paulo (Brazil) for €10 million in cash. Brazilian operations are overseen by Jean-Luc Pamart, co-founder of Ekinops and VP of R&D for optical transport.

The acquisition is financed by the Group's cash resources (€14.2 million net cash¹ at December 31, 2018) and debt. The Group raised €6.5 million of bank loans in Q2 2019.

For more information visit: www.ekinops.net

Reference:
¹ Cash and cash equivalents minus borrowings (excluding bank debt relating to CIR research tax credit pre-financing)

EKINOPS Contact:
Didier Brédy
Chairman and CEO
[email protected]

Investors:
Mathieu Omnes
Investor relation
Tel.: +33(0)1-53-67-36-92
[email protected]

Press:
Nicolas Bouchez
Press relation
Tel.: +33(0)1-53-67-36-74
[email protected]

For media information, please contact Beckie Richardson, iseepr +44(0)113-350-1922, [email protected].

SOURCE Ekinops