WAYNE, N.J. After fighting off a number of financial challenges, Tellabs said late Tuesday (Nov. 30) that it has closed a $1.5 billion merger deal with broadband equipment provider AFC.
Tellabs first announced that it purchased AFC in May for a price of $1.9 billion. But, just after the acquisition agreement was announced, financial concerns began to emerge in the industry and financial community. Those questions sparked Tellabs to restructure the deal in September, shaving off $400 million off the initial acquisition price.
Under the final terms of the deal, AFC stockholders will receive 0.504 shares of Tellabs common stock. Stockholders will also receive $12 in cash for each AFC share of common stock.
Now that the acquisition is closed, Tellabs said that Carl DeWilde will join Tellabs as to head the AFC product line. Jeff Rosen, vice president of operations at AFC, will now become vice president of operations for Tellabs.