Calix Networks To Acquire Occam Networks

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NEW YORK (GaeaTimes.com)- Occam Networks will now become part of the Telecom equipment maker Calix Networks Inc. The news was confirmed to media sources by Calix which mentioned that it has decided to buy the smaller rival Occam Networks for $171 million. The purchase will be done not only in cash but also in shares. According to the telecom equipment maker giant, the company is being bought by Calix with an aim the enhance its broadband services portfolio.

Although it is too early to predict the kind of expansion that Calix Networks Inc. will get after it get holds of Occam Networks the impact of the acquisition has already started showing effect on the share market. On Thursday, shares of Occam Networks, Inc. (NASDAQ:OCNW) received a boost of around 36% reportedly in the pre-market trading. Share analysts predicted that the shares of Occam Networks would open at a higher rate on Thursday following the announcement of acquisition by Calix Networks. The offered $7.75-per-share offer to Occam Networks by Calix comes as a 47 percent premium to Occam’s Wednesday share close. Before the bell rang on Thursday the acquisition already made Occam Network’s shares jump by 41 percent to $7.50. However, it is the Thursday trading that will make the picture more clear in front of the share analysts.

Calix Networks has reportedly mentioned that it expects the deal to enhance its adjusted earnings per share during the second quarter of 2011. The deal with Occam is expected to be closed by the end of the fourth quarter of 2010 or in the first quarter of 2011. On Wednesday, the shares of Calix Networks closed at $13.30 on the New York Stock Exchange.