Calix, a maker of next generation networking gear is buying Occam networks for $171 million in a stock and cash transaction. The deal values Occam at $7.75 a share — a 27 percent premium over current stock price and includes $3.84 a share in cash.
The demand for technology IPOs is making a slow and steady comeback. First MaxLiner, then broadband gear maker Calix Networks and now wireless LAN maker Meru Networks — Silicon Valley can perhaps afford to feel optimistic about the chances of other startups looking to go public.
Calix Networks, a Petaluma, Calif.-based broadband gear maker, sold 6.33 million shares at $13 each to raise $82 million from the public markets. One of the rare telecom IPOs, it could help boost the fortunes of other IPO candidates like Force 10 and Telx.
Force10, the networking company, filed for an IPO today, one of many companies seeking to hit the public markets. Its filing doesn’t reflect the return of the big-ticket technology offering as much as it reflects a chance to exit while it still can.
We’ve spilled a lot of digital ink on the need for backhaul for next-generation (and even current generation) wireless networks, so while at the FTTH show in Houston, I chatted with Geoff Burke, director of marketing for Calix, a provider of optical equipment for carriers, about the mobile backhaul opportunity for both the company and its customers. Read More about A Video Primer on Fiber Backhaul
This big societal move to a more connected life is causing carriers to spend a lot of money upgrading (or building) new networks, even the smallest cable companies in the farthest corners of America. And for Mike Hatfield, that is great news. Today he announced that his 3-year-old company, Cyan Optics, has signed up nearly 20 carriers and has raised at least $27 million in three rounds of funding.
Calix, a company that provides equipment to help carriers, cable companies or rural broadband providers deploy and manage fiber networks, has raised $100 million in a combination of debt and equity financing. The funding will help the company meet demand for its products, which has been spurred by the federal government spending $7.2 billion to deploy broadband, the need for wireless backhaul, and the company’s plans for expansion into South America, Canada and the Caribbean. For Calix, predominantly a supplier to rural America — the broadband business is booming.
The 10-year-old company raised $50 million in equity from existing investors. Silicon Valley Bank provided $50 million in debt. In addition to the financing, Calix added three new directors to its board: Michael Marks of Riverwood Capital, Adam Grosser of Foundation Capital, and Robert Finzi of Sprout Group. Calix declined to disclose the total amount it has raised throughout its history, although by 2002 it had pulled in more than $200 million, nor its exact revenue. Carl Russo, CEO of Calix, said the company had sales of more than $250 million last year.