Tellabs Inc has completed the acquisition of Irish signalling and transmission equipment manufacturer Delta Communications Plc, on undisclosed terms (CI No 1,120). The renamed Tellabs Ireland Ltd, a wholly owned subsidiary, will head Tellabs’ European operations; it will manufacture existing equipment, though the parent says it will eventually be involved in new product development. Predicting that the European telecommunications market will eventually be larger than that of the US, Tellabs management claims the Irish firm will benefit from its marketing and sales support. Tellabs was particulary encouraged by the fact that 85% of Delta’s sales were in Europe; Delta primarily sells its equipment to PTTs and telephone exchange manufacturers. All Tellabs manufacturing to date has been in the US; its customer base also covers telephone exchange manufacturers, as well as government departments, and it is presently negotiating with British Telecommunications Plc and Mercury Communications Ltd for new orders. Tellabs, which made only voice systems five years ago, now manufactures a range of digital systems and data communications products. It specialises in digital cross connect systems, and echo cancellers, some of which are marketed by AT&T Co and L M Ericsson; its premium product is Telemark, a network management system.
