Occam Networks Surges On Acquisition News

Shares of Occam Networks Inc (NASDAQ: OCNW) jumped after the company agreed to be acquired by Calix Inc (NASDAQ: CALX) for about $171 million.

CALX will buy OCNW for $7.75 per share, representing a 47% premium to OCNW's closing price on Wednesday. Calix is expecting the deal to close by the fourth quarter of 2010 or by the first quarter of 2011.

Carl Russo, president and chief executive officer of Calix, said, “The rate of change is accelerating for communications service providers, and Calix is fully committed to providing our customers with the broadest portfolio of innovative access network options to adapt to this changing world.” He added, “By combining Occam Networks' expertise in IP and Ethernet, Calix's strength in fiber access, and both companies' experience in copper access, we believe there is a clear opportunity to further enhance the Calix Unified Access portfolio, accelerate its future innovation, and enable greater broadband deployment by communications service providers globally. As a result of this acquisition, communications service providers can expect new innovations to the expanded Calix Unified Access portfolio that directly address the emerging needs of the broadband-connected consumer while also making these communications service providers more capitally and operationally efficient. We are excited about what this combination of top engineering and support talent will mean to bringing new and accelerated access network innovation to our joint customers and communications service providers.”

OCNW's shares jumped 36.67% to $7.23 at 9:42 am.

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