DASAN Network Solutions to Merge with U.S.-based Network Equipment Provider

At a recent press conference in Yeouido, Seoul, DASAN Network Solutions Inc., a wholly owned subsidiary of DASAN Networks Inc. said that it has decided on a merger and acquisition (M&A) involving the Nasdaq-listed Zhone Technologies Inc. The M&A between the two companies will be completed on June 30 and the merged entity will be called DASAN Zhone Solutions Inc. DASAN Networks Chairman Nam Min-woo said, “Once the merger is completed, DASAN Networks will become one of the top five network equipment makers, following French Alcatel-Lucent S.A., China’s Huawei Technologies Co. and ZTE Corp.”

Zhone Technologies is the eighth largest ultra-speed internet networking solutions provider in the global FTTH market. The company has a strong foothold in North America, Europe, and the Middle East, and provides networking solutions to more than 750 of the world`s most innovative network operators.

DASAN Networks said that the M&A between the two companies will create a synergy as Zhone Technologies has different main markets. While Zhone Technologies has a strong foothold in North America, Europe, and the Middle East, DASAN Networks has a strong foothold throughout Asia. DASAN Zhone Solutions will thus be able to expand its share in the global market in a short time by combining the two companies’ customer cases.

The Nasdaq-listed Zhone Technologies, which has existing clients and production bases in North America, will provide a concrete foundation for DASAN Networks to compete with other network equipment providers already existing in North America. Zhone Technologies’ three customer support centers in the U.S. will also be able to meet the demand of customer technical support in the local market.

"This decision was made as a global expansion plan for DASAN Networks. The M&A between the two companies will become a major turning point for the company which seeks to shift its main market from the domestic to the North American market through the U.S-based and Nasdaq-listed firm," said Nam. "By combining the strengths of both companies, DASAN Zhone Solutions will become one of the top five network solution providers in the global market."