London, UK -- Two of the biggest players in network synchronization, Symmetricom and Datum are to merge in a deal valued at $112m. The transaction is expected to close in the fourth quarter of this year, subject to stockholder and regulatory approvals.

Once completed, Datum will become a wholly owned subsidiary of Symmetricom. The companies say the deal will generate $14m of annual savings in operational costs and expenses.

"Combining the organizations will produce a more dynamic and resource-rich company with an expanded product line, a broader base of customers and a strong balance sheet. There is very little customer overlap, so we will have the opportunity to cross-sell our products and deepen our customer relationships," commented Thomas Steipp, president and chief executive officer of Symmetricom, who will retain these roles in the enlarged organization

Erik van der Kaay, chairman, president and CEO of Datum. will become chairman of the new Symmetricom.

Symmetricom specializes in synchronization devices for both wireline and wireless, and the company also has a range of broadband products. Datum designs and manufactures a wide variety of high-performance time and frequency products used to synchronize the flow of information in telecommunications networks. The company is also a leading supplier of precise timing products for computing networks, satellite systems and test and measurement applications.

In March, Symmetricom signalled its strategy to become a bigger player in the provision of time and frequency products and systems for communications networks when it announced the acquisition of TrueTime. The Santa Rosa, California based company makes some of the most accurate timing technology for applications such as GPS receivers.