ADTRAN Inc has announced its merger with Germany’s ADVA Optical Networking in a deal valued at €789 million or around $931 million to create a combined company that will offer end-to-end fibre networking solutions to communication service providers (CSPs), enterprises, and government customers worldwide.

While ADTRAN develops fibre access, fibre extension, and subscriber connectivity solutions ADVA offers metro wavelength division multiplexing, data centre interconnect, business ethernet, and network synchronisation solutions.

The combined company will be known as ADTRAN Holdings Inc. The combined business is expected to generate about $1.2 billion in revenue and more than $50 million in annual run-rate cost synergies.

The companies expect the transaction to close during the second or third quarter of 2022, subject to regulatory approvals.