RTTNews | Aug 30, 2021 08:25AM EDT

08:25 Monday, August 30, 2021 (RTTNews.com) - ADTRAN, Inc. (ADTN) and ADVA said they will combine under a new holding company pursuant to an all-stock exchange offer for ADVA's shares. The combined company will be named ADTRAN Holdings, Inc. with global headquarters in Huntsville, AL and European headquarters in Munich, Germany. It will be dual-listed on the NASDAQ and Frankfurt.

Under the offer, each ADVA share will be exchanged for 0.8244 shares of common stock in the new holding company. ADTRAN shareowners will own approximately 54% of the equity of the combined company and ADVA shareholders will own approximately 46%. The offer has an equity value of 789 million euros, and an enterprise value of 759 million euros.

ADTRAN's CEO Tom Stanton will continue in the same position following the close of the merger. ADTRAN's CFO Mike Foliano will also remain in his current role. ADVA's CEO, Brian Protiva, will be Executive Vice Chairman of the combined company.

The companies noted that the deal has the support of ADVA's largest shareholder, Egora.

Shares of ADTRAN, Inc. were down nearly 5% in pre-market trade on Monday.

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