NAPERVILLE, Ill.-Tellabs Inc. said it will acquire broadband access company AFC for $1.9 billion in cash and stock.
The deal was approved by both companies’ board of directors, according to Tellabs.
Under the terms of the deal, Tellabs stockholders will own approximately 75 percent of the company, while AFC stockholders will own 25 percent. The combination will bring AFC’s access capability together with Tellabs’ transport products.
“Together, Tellabs and AFC create a strategic global telecom equipment supplier that will lead the industry’s shift to broadband data with end-to-end access and transport solutions,” said Krish Prabhu, chief executive officer and president of Tellabs.
