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DASAN Networks and Zhone Technologies agreed to merge to become a Global Leader in Telecom Market
04/13/2016 | By NETMANIAS (tech@netmanias.com)

DASAN Networks, a global network solution provider in Korea (MinWoo Nam, CEO) announced that they have decided on a merger and acquisition involving Zhone Technologies (Nasdaq: ZHNE), an American based telecommunications equipment provider.

On the 12th, DASAN Networks and Zhone Technologies announced that they have agreed to merge subsidiary companies, DASAN Network Solutions, Inc. and DA corp.

By merging the two subsidiary companies DASAN Networks will be acquiring 58% of Zhone Technologies shares, incorporating Zhone Technologies as one of its major subsidiary companies.

After this M&A, DASAN Networks will become the seventh largest provider of broadband access equipment, while jumping to the sixth largest provider of GPON equipment, only trailing major global conglomerates such as Alcatel-Lucent, Huawei and ZTE.
Zhone Technologies, located in California USA, currently has the top eighth position in global FTTH market. By the time the M&A is complete (approximately June~July 2016), Zhone Technologies will change its company name to DASAN Zhone Solutions and will try to take place as one of the top five network solution providers in the global market.

DASAN Zhone Solutions aims to maximize revenue and market share by merging the strengths of both companies. While DASAN Networks has a strong foothold throughout Asia, Zhone Technologies has a strong foothold in North America, Europe, and the Middle East. DASAN Zhone Solutions will thus be able to promote products and solutions that previously belonged to two separate companies to expand its product portfolio and customer base.

The current target is to reach two percent market share in the global broadband access, mobile backhaul, and enterprise markets which add up to a $40 billion dollar market.

DASAN Networks is expected to gain momentum for market expansion in North America. Zhone Technologies, having existing clients, along with production and logistics centers in 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 will also become a major upside in DASAN Zhone Solutions’ expansion plan for North America.

DASAN Zhone Solutions will provide total solution portfolio after integrating the products of both companies. Zhone Technologies’ next-generation Multiple Service Access Platform (MSAP), and terabit access concentrator combined with DASAN Networks’ product line-up produces an end-to-end fiber network solution that will meet expectations from various clients and customers.
MinWoo Nam (CEO of DASAN Networks), said that “This decision was made as a global expansion plan for both DASAN Networks, and Zhone Technologies.


Now, by combining forces, DASAN Zhone Solutions has a strong foothold in every continent, and can reach customers all around the globe. The M&A between the two companies will become a major turning point, and the North American market will become the main market for DASAN Zhone Solutions.” He also added that, “By combining the strengths of both companies, DASAN Zhone Solutions will become one of the top five network solution providers.”

“The merger of Zhone and DASAN will immediately position our company as a leading provider of Broadband Access, Mobile Backhaul, Ethernet Switching and Passive Optical LAN solutions,” states Jim Norrod, CEO of Zhone Technologies. “We will expand our customer base around the world and take advantage of greater economies of scale in manufacturing, support and engineering.”

About DASAN Networks, Inc. DASAN Networks, since its start in 1993, has grown as a global network solution provider and currently focuses on business operation as a holding company along with its network solution business. DASAN Networks has subsidiaries including DASAN Network Solutions for network solution business, Solueta for EMC solution, HandySoft for software development, DMC for automobile parts, and DTS for industrial heat exchanger business. www.dasannetworks.com


About DASAN Network Solutions, Inc. DASAN Network Solutions is a 100% subsidiary of DASAN Networks. The company has headquarters in the USA and has a corporation in Korea. DASAN Network Solutions (USA) is founded in 2010 and DASAN Network Solutions (Korea) became a captive spin-off of DASAN Networks in 2015. DASAN Network Solutions develops and manufactures a wide range of network equipment for Carriers and Enterprises from FTTH, Mobile Backhaul, Ethernet Switch to Wi-Fi. www.dasannetworks.com

About Zhone Technologies, Inc.
Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in fiber access transformation for service provider and enterprise networks, serving more than 750 of the world's most innovative network operators. The IP Zhone is the only solution that enables service providers to build the network of the future today, supporting end-to-end Voice, Data, Entertainment, Social Media, Business, Mobile Backhaul and Mobility service. Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers. Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free. www.zhone.com

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