Zhone Technologies announced a definitive agreement to merge with Dasan Network Solutions, a subsidiary of Korea's Dasan Networks. Zhone will acquire Dasan Network Solutions and in exchange will issue shares to Dasan Networks representing 58 percent of the combined company. The existing stockholders of Zhone will retain 42 percent. T
he new company will be called Dasan Zhone Solutions and will have two co-CEOs, one appointed by Dasan Networks and the other by Zhone. Zhone will have three seats on the board of directors and Dasan four.
Zhone said the deal will lead to a bigger customer base and product portfolio, making it a leading provider of broadband access, mobile backhaul, Ethernet switching and passive optical LAN products. The company can take advantage of greater economies of scale in manufacturing, support and engineering.
The group will maintain its stock listing on the Nasdaq market after the takeover. The deal remains subject to approval from regulators and Zhone's shareholders.
