Ethernet vendors Overture, Hatteras to merge

The privately held carrier Ethernet makers did not disclose the terms of the deal

Overture Networks and Hatteras Networks, both privately held vendors of carrier Ethernet equipment, have agreed to merge in a deal with undisclosed financial terms.

The companies expect to close the deal in two or three weeks. Both are based in Research Triangle Park, North Carolina, and they plan to move soon to a new, larger facility in the same area. The new company, with more than 200 employees, will be called Overture Networks. Overture CEO Jeff Reedy will keep that title at the merged company, while Hatteras CEO Kevin Sheehan will be president.

Both companies have been selling Ethernet equipment to service providers for more than 10 years, since the early days of carrier Ethernet. The executives said their companies have complementary product lines and together will be able to offer a full lineup of equipment for Ethernet over both fiber and copper lines, allowing carriers to offer services ranging from 1M bps (bits per second) to 10G bps.

"We are trying to become the dominant leader in carrier Ethernet," Reedy said on a conference call on Tuesday announcing the agreement.

Carrier Ethernet is used for high-speed wide-area network services to enterprises, wired backhaul from cellular base stations, and other applications. Verizon Communications, AT&T, Time-Warner Telecom, Magyar Telecom of Hungary and Australian carrier AAPT are among the customers that the combined companies will serve, the executives said. Seven of the eight largest Internet service providers in the U.S. use Overture equipment, Reedy said. All customer relationships will remain in place, he said.

Reedy and Sheehan said they had been talking for three years about a possible merger and chose this time because the carrier Ethernet market is strong. They hope to take the merged company public in time, they said.

The executives did not estimate their annual revenue or forecast the revenue of the combined companies. On the call, analyst Michael Howard of Infonetics Research estimated the merged entity would have revenue between US$60 million and $80 million per year.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags networking hardwaretelecommunicationHatteras NetworksNetworkingOverture Networksswitchesbroadband

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?