Clearfield (NASDAQ:CLFD) has acquired a portfolio of Telcordia certified outdoor powered cabinet products from Calix (NYSE:CALX) for a total consideration of $10.35 million in cash, in addition to the assumption of related warranty obligations as well as certain purchase commitments. The purchase price was paid with Clearfield's available cash.
The introduction of the Clearfield powered cabinet line is intended to provide customers a single point of contact for cabinet solutions, both passive and powered. The acquisition is also intended to enable Clearfield to expand its Fiber-to-Anywhere expertise to include powered electronic cabinet platforms while leveraging its supply chain.
In connection with the transaction, Calix will resell the new Clearfield-branded powered cabinet products, which include the ODC 100/200 series and the ODC 1000/2000 series of enclosures.
"This acquisition and partnership represents a major step in Phase III of our growth strategy, that centers around capturing the broader market opportunity through channel development, strategic alliances, and product line enhancements," said Cheri Beranek, president and CEO of Clearfield. "In addition to expanding our product line and strengthening our position in our core wireline and wireless markets, we're also now able to get involved earlier in the sales cycle, since powered cabinets are designed earlier in fiber-to-the-home deployments. More importantly, we're accelerating our expansion into the tier 1 market by leveraging Calix's existing relationships with these larger accounts. Longer term, and as the demand for newer solutions such as NG-PON2 proliferate, this acquisition will help elevate Clearfield's position in the marketplace as the clear cabinet supplier of choice for both passive and powered configurations."
Michael Weening, executive vice president sales and marketing at Calix, said: "Offering our customers industry-leading complete solutions and providing them world-class service are core Calix values. Clearfield shares these values and is the ideal partner for us, helping us expand the outdoor cabinet options that we currently offer our customers. We are proud to partner with Clearfield and leverage their deep domain expertise to enhance our offerings while we continue to expand AXOS, the world's only software defined access platform, help transform marketing and support with Calix Cloud and innovate on the premises with EXOS."
"The Calix outdoor cabinet enclosure portfolio is a powerful addition to our industry-leading Fiber-to-Anywhere platforms," said Johnny Hill, COO of Clearfield. "Further, since the assets are significantly intertwined with our current manufacturing processes, we can integrate them more effectively into our supply chain and generate higher contribution margins from this product line. We look forward to not only the long-term benefits this acquisition is expected to bring with converged access for 5G support, but also to developing new enclosures that can expand our addressable market and scale our business even further."
