DASAN Networks announced its plan to become a business that will make $881 million (1 trillion KRW) in sales within 3 years. By using an opportunity that it gained from merging with NASDAQ-listed company called Zhone Technology, it is planning to increase percentage of foreign sales in network field up to 90%. Chairman Nam Min-woo of DASAN Networks met with reporters on the 21st and explained background of M&A with Zhone Technology and what DASAN Networks is going to do from here.

DASAN Networks announced that it gave shares of its American affiliate called Dasan Network Solutions to Zhone Technology on the 12th and obtained 58% of Zhone Technology’s shares. Zhone Technology is the 8th best business in the world in FTTH (Fiber to the Home) and has solid level of customers in North America, Middle East, and Europe. Chairman Nam is expecting that business experience that it has gained in Asian region can create synergy with Zhone Technology.

“By using this M&A as an opportunity, DASAN Networks will move base of its business from South Korea to North America.” said President Nam. “We will be able to compete with North American telecommunication businesses at an equal level in mobile backhaul 72 business.”

Other than DASAN Networks, DASAN Group also has Handysoft, Solueta, DMC, and DTS as its affiliates. Based on end of last year, group’s overall sales were about $229 million (260 billion KRW). Chairman Nam’s goal is to make $881 million in sales by 2018.

Photo Image
<Chairman Nam Min-woo of DASAN Networks announced his plan to make DASAN Networks a business that will make $881 million (1 trillion KRW) in sales within 3 years. By using an opportunity that it gained from merging with NASDAQ-listed company called Zhone Technology, it is planning to increase percentage of foreign sales in network field up to 90%. >

DASAN Group’s key business is network business. By absorbing Zhone Technology, Chairman NAM is expecting that its competitive edge in enterprise products that include FTTH, mobile backhaul, Ethernet switch and others and SDN100 (Software Defined Networking) field will increase.

Value of global market of corresponding field is worth $42.2 billion (48 trillion KRW). Chairman Nam said that his goal is to take up 2% of this market, which means that he wants to make more than $791 (900 billion KRW) in network field. To achieve this goal, DASAN Networks is going to increase percentage of foreign sales in network field up to 90%.

“There is more effect of non-visual synergy than visual synergy in buying Zhone Technology.” said Chairman Nam. “If capabilities of sales and R&D from both businesses are combined, we will be able to achieve great success not just in North America but also in global markets.”

Through M&A of DASAN Networks and Zhone Technology, DASAN Networks has become the parent company of Zhone Technology while Zhone Technology has become its affiliate with a new company name called DASAN Zhone Solutions. DASAN Network Solutions has become an affiliate of DASAN Zhone Solutions. There were no money transactions, and affiliates just exchanges stocks through merge.

Staff Reporter An, Hochun | hcan@etnews.com