Showing posts with label Mergers and Acquisitions. Show all posts
Showing posts with label Mergers and Acquisitions. Show all posts

Tuesday, April 11, 2017

Microsoft Acquires Deis for Kubernetes Management

Microsoft is acquiring Deis, a start-up specializing in Kubernetes container management technologies. Financial terms were not disclosed.

Deis has offices in San Franciso and Boulder, Colorado.

"At Microsoft, we’ve seen explosive growth in both interest and deployment of containerized workloads on Azure," stated Scott Guthrie - Executive Vice President, Cloud and Enterprise Group, Microsoft, in a company blog.

http://www.deis.com

Monday, April 10, 2017

AT&T Buys 39 GHz and 28 GHz Licenses for $1.6 Billion

AT&T agreed to acquire Straight Path Communications, which holds a nationwide portfolio of millimeter wave (mmWave) spectrum, including 39 GHz and 28 GHz licenses.

Specifically, AT&T will acquire 735 mmWave licenses in the 39 GHz band and 133 licenses in the 28 GHz band. These licenses cover the entire United States, including all of the top 40 markets.

The deal was valued at $1.6 billion, which includes liabilities and amounts to be remitted to the FCC per the terms of Straight Path’s January 2017 consent decree.  Straight Path shareholders will receive $1.25 billion, or $95.63 per share, which will be paid using AT&T stock.

AT&T said the purchase completment its January acquisition of FiberTower and augments the company’s holdings of mmWave spectrum.

The transaction is subject to FCC review, and the two companies expect to close within 12 months.

http://www.att.com




Saturday, April 1, 2017

A Complicated Chain of Mergers and Acquisitions

A convoluted set of interrelated mergers over the past two years has brought together players from Singapore, Irvine, San Jose, Suwanee (Georgia) and the UK, with the various companies in play including ARRIS, Avago, Avaya, Broadcom, Brocade, Extreme, Motorola Mobility, Pace and Ruckus. For customers, employees and investors in these companies, such transactions are always disruptive to some degree, while for the wider networking industry it is interesting to see how shareholder value is created or destroyed by rearranging the products and development teams between a handful of players. This piece will review the key moves in this complicated dance sequence.

Avago a big buyer and seller

Perhaps the prime mover here is Avago Technologies, which in May 2015 agreed to acquire Broadcom for approximately $37 billion in a deal involving $17 billion in cash the rest in Avago shares. As part of the deal, Avago changed its name to Broadcom. This merger was premised on the goal of building the 'world's leading' diversified communications semiconductor company. In terms of overall annual revenue, the combined company entered the space in the No.3 position, behind Intel (No.1) and Qualcomm (No.2), but ahead of Texas Instruments and NXP.

Broadcom, based in Irvine, California, was founded in 1991 by Henry Samueli and Henry T. Nicholas III, two professors from UCLA; by the time of the deal, Broadcom had about 10,000 employees worldwide and more than 10,700 U.S. and 3,700 foreign patents. Revenue in 2014 was $8.43 billion.

Avago traces its origins back to 1961, when it was established as the semiconductor division of Hewlett-Packard. In 1999, it became part of the Agilent Technologies split; in 2005 Agilent sold the division to the private equity firms of KKR and Silver Lake Partners. In August 2008, Avago completed its initial public offering and shares began trading on Nasdaq under the symbol AVGO.

Even prior to the mega transaction with Broadcom, Avago had been on as acquisition binge. In 2014, it acquired LSI for $11.15 per share in an all-cash transaction valued at $6.6 billion, but later sold off LSI's SSD division to Seagate and then its Axxia networking division to Intel. In February 2015, Avago agreed to acquire Emulex, which supplies Ethernet and Fibre Channel connectivity products to leading OEMS. In 2013, Emulex acquired Endace, a specialist in monitoring solutions.

In November 2016, Broadcom agreed to acquire Brocade Communications Systems for $12.75 per share in an all-cash transaction valued at approximately $5.5 billion, plus $0.4 billion of net debt. At the time the deal was announced, Broadcom said it was motivated by Brocade's Fibre Channel storage area network (FC SAN) switching business, but that it would divest Brocade's IP Networking business, consisting of wireless and campus networking, data centre switching and routing, and software networking solutions. This it has since done.

In February, ARRIS agreed to acquire Brocade's Ruckus Wireless and ICX Switch business for $800 million in cash, plus the additional cost of unvested employee stock awards, following the closing of Broadcom's acquisition of Brocade. The deal is contingent on Broadcom closing its acquisition of Brocade, as announced on November 2, 2016, which was approved by Brocade shareholders on January 26th. Broadcom presently expects to close the Brocade acquisition in its third fiscal quarter ending July 30, 2017. For ARRIS, the Ruckus deal expands its market segment into service provider WiFi and enterprise WLAN. As a side note, Brocade acquired Ruckus Wireless less than a year ago in a deal valued at approximately $1.5 billion, consisting of $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock.

ARRIS a buyer

ARRIS began to consolidate its position as the leading supplier in cable networking five years ago by acquiring Motorola Home from Google for $2.35 billion in cash and stock. Motorola Home was a leading global supplier of digital video and IPTV hardware and software solutions for the cable, telecom, broadcast and satellite markets. Google had acquired Motorola for $40.00 per share in cash, or a total of about $12.5 billion, in 2012, primarily for its trove of 12,000 patents to strengthen the intellectual property domain of its Android ecosystem.

In 2015, ARRIS acquired Pace plc, another leading supplier of networking equipment for cable operators, for $2.1 billion (GBP 1.4 billion) is stock and cash.

Extreme also a buyer

Earlier this week, Extreme Networks agreed to acquire Brocade Communications Systems' data centre switching, routing, and analytics business from Broadcom for $55 million in cash, consisting of $35 million at closing and $20 million in deferred payments, as well as additional potential performance based payments to Broadcom, to be paid over a five-year term. The sale is contingent on Broadcom closing its acquisition of Brocade.

It is interesting to note that most of Brocade's data centre and routing team traces its origins to Foundry Networks, which Brocade acquired in 2008 for approximately $3 billion (the deal was amended prior to closing in November 2008). Foundry Neworks, established in 1996 by Bobby R. Johnson, gained notoriety for a spectacular IPO in 1999 during the height of the Internet bubble when its market capitalisation soared to $9 billion. Foundry was among the first to ship a Gigabit Ethernet switch.

In 2012, Brocade acquired Vyatta, a Silicon Valley-based developer of virtualised networking software. Financial terms of this deal were not disclosed. Brocade also acquired Vistapointe in 2014, a start-up based in San Ramon, California with operations in Ireland and Bangalore, India, for its cloud-based and real-time network intelligence solutions for mobile operators, on undisclosed terms. Vistapointe brought expertise in data extraction, analysis and insight generation technologies that enable mobile operators gain visibility into their mobile networks. These units presumably form part of the sale to Extreme Networks.

Extreme Networks has also made two other recent deals to fortify its position. Earlier this month, it entered into an agreement with Avaya to be the stalking horse bidder to acquire its networking business in an auction process. This deal was valued around $100 million. And in October 2016, Extreme acquired the wireless LAN business of Zebra Technology for $55 million in cash.

Brocade broken apart


One of the big outcomes from all this activity is that Brocade is being broken apart into its historical components: Fibre Channel, Ethernet switching, and the Ruckus Wireless Group. ARRIS emerges with a broadened portfolio and Extreme Networks appears to be rejuvenated. Most of all, Avago/Broadcom gains considerable leverage as the dominant supplier of several key networking components and also as a deal maker who is reshaping the industry.

Friday, March 31, 2017

ADI acquires OneTree Microdevices

Analog Devices, a supplier of analogue, mixed-signal and digital signal processing semiconductors, has announced the acquisition of Santa Rosa, California-based OneTree Microdevices, a privately-held fabless semiconductor company offering solutions for emerging broadband networks, on undisclosed terms. 

ADI is a major supplier of mixed signal solutions for cable access, ranging from data converters to clocking and control/power conditioning. Through the acquisition of OneTree Microdevices' GaAs and GaN amplifier portfolio, which are designed to offer enhanced linearity, output power and efficiency, ADI will be able to address the complete signal chain for next-generation cable access networks.


OneTree Microdevices focuses on delivering solutions for broadband networks, having developed a range of key components for CATV, including enabling support for DOCSIS 3.1 technology, and FTTH networks. Analog Devices noted that cable operators are adopting next generation architectures such as DOCSIS 3.1 and remote PHY to increase the capacity of their networks, which the acquired OneTree assets will enable it to serve.

Analog Devices recently completed the acquisition of Linear Technology, a designer, manufacturer and supplier of a broad range of analogue integrated circuits for major customers worldwide, for a total of approximately $14.8 billion in cash and stock.

Linear Technology's products are designed to provide the bridge between analogue and digital electronics, with applications in markets including communications, networking, industrial, automotive, computer, instrumentation and consumer. The company's products span power management, data conversion, signal conditioning, RF and interface ICs, subsystems and wireless sensor networks.


Commenting on the acquisition, Greg Henderson, VP, RF and microwave business at Analog Devices, said, "…. with OneTree Microdevices, ADI is positioned to solve the bandwidth and power efficiency challenges facing cable operators in their efforts to increase broadband Internet services for homes and businesses… OneTree’s expertise aligns with ADI's focus on GaN technology and extends its portfolio of RF and microwave signal chain solutions for infrastructure, defence and instrumentation markets".


Wednesday, March 29, 2017

Extreme to Acquire Brocade's Switching Business for $55 Million

Extreme Networks agreed to acquire Brocade Communications Systems' data center switching, routing, and analytics business from Broadcom following Broadcom's acquisition of Brocade. The deal is valued at $55 million in cash, consisting of $35 million at closing and $20 million in deferred payments, as well as additional potential performance based payments to Broadcom, to be paid over a five-year term. The sale is contingent on Broadcom closing its acquisition of Brocade, previously announced on November 2, 2016 and approved by Brocade shareholders on January 26, 2017. Broadcom presently expects to close the Brocade acquisition in its third fiscal quarter ending July 30, 2017.

Extreme expects the acquisition to be accretive to cash flow and earnings for its fiscal year 2018 and expects to generate over $230 million in annualized revenue from the acquired assets. The acquisition is expected to close within 60 days following the closing of Broadcom's acquisition of Brocade.

"The addition of Brocade's data center networking business significantly strengthens our position in the expanding high-end data center market and reinforces our strategy of delivering software-driven networking solutions focused on enterprise customers," said Ed Meyercord, President and CEO of Extreme Networks. "As Extreme is the only pure-play end-to-end, wired and wireless enterprise IP networking company in the world, we believe Brocade's data center customers will benefit from our dedication to delivering high-quality, software-driven, secure networking solutions and the industry's highest rated customer support. Today's announcement, coupled with our recent announcements regarding our position as the stalking horse bidder of Avaya's networking business and the successful completion of the integration of Zebra's wireless LAN business, along with Extreme's organic investments in R&D, will result in a state-of-the-art, newly-refreshed portfolio of enterprise solutions for our customers.

"Moreover, this acquisition is important as it expands our commercial relationship with Broadcom," continued Meyercord. "We already have our 200 Series of value oriented switches leveraging Broadcom's FASTPATH operating system software and this transaction will only broaden our strategic partnership.  Finally, given the strong profitability of Brocade's data center business, this transaction will accelerate Extreme's objective to achieve gross margins in excess of 60%."

"Extreme is highly complementary to our data center switching, routing, and analytics business on many levels, and represents a positive outcome for our customers, partners, and employees," said Lloyd Carney, CEO of Brocade. "Our two companies have similar strategic visions and believe that innovation will increasingly be driven through software capabilities that allow customers to successfully transform their networks for digital business. Both companies are pure-play networking providers, serving the enterprise edge to the data center core. And both companies consistently demonstrate a customer-first culture, placing a high value on excellence in customer and partner support. In addition, we believe Extreme's desire to build on the innovation and momentum of our completely refreshed data center portfolio, including the new SLX family, as well as its intention to drive the ongoing success of our VDX and MLX families, will allow our customers and partners to continue to leverage the full benefits of our world-class portfolio."

http://www.extremenetworks.com
http://www.broadcom.com


  • In October 2016, Extreme Networks closed its acquisition of the wireless LAN business from Zebra Technology Corporation, which is expected to generate over $115 million in annualized revenue.

  • In March 2017, Extreme entered into an agreement with Avaya to be the stalking horse bidder to acquire its networking business in an auction process.

  • On July 21, 2008, Brocade announced a deal to acquire Foundry Networks for approximately $3 billion. Under the agreement, Brocade agreed pay a combination of $18.50 of cash plus 0.0907 shares of Brocade common stock in exchange for each share of Foundry common stock, representing a total value of $19.25 (based on Brocade's closing stock price on Friday, July 18, 2008 of $8.27). In November 2008, Brocade and Foundry Networks amended their original merger agreement. Under the revised terms, Foundry stockholders would be entitled to receive $16.50 per share in an all-cash transaction at the closing of the deal, as previously announced by the companies on Oct. 29, 2008.

Monday, March 27, 2017

Vodafone and Idea to Merge and Create Largest Operator in India

Vodafone India and Idea have agreed to merge to create the largest telecoms operator in India. The transaction is to be implemented as a merger of equals that will result in joint control of the combined company between Vodafone and the Aditya Birla Group.

Under the terms of the agreement, Vodafone will combine its subsidiary Vodafone India (excluding its 42% stake in Indus Towers) with Idea, an Indian stock exchange-listed company. Vodafone stated that the merger ratio is in line with recommendations from independent valuers, with an implied enterprise value of INR828 billion ($12.4 billion) for Vodafone India and INR722 billion ($10.8 billion) for Idea, excluding its stake in Indus Towers.

On completion of the transaction, Vodafone will own 45.1% of the combined company, after transferring a stake of 4.9% to the Aditya Birla Group for approximately INR39 billion ($579 million) in cash, concurrent with completion of the merger. The Aditya Birla Group will own 26.0% of the new company, with the right to acquire additional shares from Vodafone under an agreed mechanism, with a view to eventually equalising the shareholdings over a period of 4 years.

Vodafone stated that the transaction will establish a complementary combination that will be India's largest telecoms operator with the most extensive mobile network and a commitment to support the Indian government's Digital India initiative. The combination will result in an operator serving approximately 400 million customers, with a 35% market share in terms of subscribers and a 41% share in terms of revenue. The combined company will hold 1850 MHz of spectrum, including around 1645 MHz of liberalised spectrum acquired through auctions

The combination is expected to enable significant cost and capex synergies with an estimated net present value of approximately INR670 billion ($10 billion) after integration costs and spectrum liberalisation payments, with estimated run-rate savings of INR140 billion ($2.1 billion) on an annualised basis by the fourth full year after completion of the transaction.

Completion of the transaction, which is subject to approvals from relevant regulatory authorities, other customary closing conditions and approval by Idea shareholders, is expected in the 2018 calendar year. After closing, Vodafone India will be deconsolidated by Vodafone, reducing the group's net debt by approximately $8.2 billion.

http://www.vodafone.com/content/index/media/vodafone-group-releases/2017/merger-vodafone-india-idea.html

Monday, March 13, 2017

Intel to Acquire Mobileye for $15.3 Billion - Automated Driving

Intel agreed to acquire Mobileye, a developer of machine vision systems for automated driving, for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion. The acquisition will couple the best-in-class technologies from both companies, including Intel’s high-performance computing and connectivity expertise and Mobileye’s leading computer vision expertise to create automated driving solutions from the cloud through the network to the car.

Mobileye, which is based in Israel, claims the leading market position in computer vision for Advanced Driver Assistance Systems (ADAS). Its portfolio includes surround vision, sensor fusion, mapping, and driving policy products. Mobileye's EyeQ chips are already installed in ~16M vehicles as of 2016. Its upcoming EyeQ4 and EyeQ5 chips for Level 3/4 autonomous driving programs go into production in 2018 and 2020 respectively. Mobileye currently has OEM relationships with GM, VW, Honda, BMW, PSA, Audi, Kia, Nissan, Volvo, Ford, Renault, Chrysler, SAIC and Hyundai. Mobileye reported 2016 revenue of $358 million and gross margin of 76%.  The company has approximately 660 employees.

Intel said the merger will accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles.  Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030.

“This acquisition is a great step forward for our shareholders, the automotive industry and consumers,” said Brian Krzanich, Intel CEO. “Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers."

Intel also noted that it expects by 2020 autonomous vehicles will generate 4,000 GB of data per day.

http://intelandmobileye.transactionannouncement.com/wp-content/uploads/2017/03/Intel-to-Acquire-Mobileye-.pdf

Wednesday, March 8, 2017

Avaya to Sell Networking Business to Extreme for $100m

Avaya, which on January 19th filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code, has announced it that has entered into an asset purchase agreement under which Extreme Networks will serve as the primary bidder in a section 363 sale under the bankruptcy code to acquire Avaya's networking business for approximately $100 million, subject to adjustments.

The sale process will be administered by the U.S. Bankruptcy Court for the Southern District of New York and governed by the U.S. bankruptcy code. Other interested parties will have the opportunity to submit bids prior to a deadline set by the bankruptcy court. If other qualified bids are submitted, an auction process will be conducted, with the agreement with Extreme set as the floor value for the auction.

Approval of a final sale to either Extreme or a rival bidder is expected to take place shortly after completion of an auction, and the transaction is expected to close by June 30, 2017, the end of Avaya's fiscal third quarter 2017, subject to regulatory approvals and other customary closing conditions.

On February 8th, Avaya reported first quarter results for the period ended December 31,2016 including revenue of $875 million, compared with $958 million a year earlier, with a net loss of $102 million, versus a net loss of $27 million in the 2016 first quarter. First quarter product revenue was $401 million, compared with $464 million a year earlier.

Extreme reported second quarter results for the period ended December 31, 2016 on February 1st including revenue of $148 million, compared with $139 million a year earlier, with a net income of $12.7 million, compared with net income of $9.0 million for the second quarter of 2016.

Avaya announced on January 19th that it was filing under chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court, stating that its foreign affiliates were not included in the filing and would continue normal operations.

The company noted it had obtained a committed $725 million debtor-in-possession (DIP) financing facility underwritten by Citibank. Subject to court approval, the DIP financing, combined with cash from operations, was expected to provide sufficient liquidity during the chapter 11 cases to support continuing business operations.

Regarding the transaction, Kevin Kennedy, president and CEO of Avaya, said, "After extensive evaluation, I believe that a sale of the Networking business is the best path forward for all stakeholders… it provides a clear path for networking customers and partners and enables the company to focus on its core… Unified Communications and Contact Center solutions".

http://www.avaya.com
http://investor.extremenetworks.com/releasedetail.cfm?ReleaseID=1016337

Tuesday, March 7, 2017

HPE to Acquire Nimble Storage for $1 Billion

Hewlett Packard Enterprise agreed to acquire Nimble Storage, a supplier of predictive all-flash and hybrid-flash storage solutions, for $12.50 per share in cash, representing a net cash purchase price at closing of $1.0 billion. In addition to the purchase price, HPE will assume or pay out Nimble’s $200 million in unvested equity awards.

Nimble offers midrange flash storage solutions featuring an intelligent, predictive analytics engine that assesses performance issues across the full data path, from apps to the array.  In addition, Nimble has recently introduced multicloud storage services that combine the best of on-premises and public cloud storage capabilities for Hybrid IT deployments.  Nimble, which is based in San Jose, California, was founded in 2007 and has approximately 1,300 employees worldwide. The company delivered revenue of $402 million in its most recent fiscal year, up 25 percent year over year.

HPE said Nimble’s predictive flash offerings are complementary to its own scalable midrange to high-end 3PAR solutions and affordable MSA products.  In addition, HPE plans to incorporate Nimble’s InfoSight Predictive Analytics platform across its storage portfolio, which will enable a stronger, simplified support experience for HPE customers.

“Nimble Storage’s portfolio complements and strengthens our current 3PAR products in the high-growth flash storage market and will help us deliver on our vision of making Hybrid IT simple for our customers,” said Meg Whitman, President and CEO, Hewlett Packard Enterprise. “And, this acquisition is exactly aligned with the strategy and capital allocation approach we’ve laid out. We remain focused on high-growth and higher-margin segments of the market.”

“Over 10,000 enterprises are using Nimble Storage because our Predictive Cloud Platform is reliably fast, radically simple, and cloud ready,” said Suresh Vasudevan, CEO at Nimble Storage. “This acquisition validates our technology leadership in flash and in the use of cloud-based predictive analytics.  We’re confident that by combining Nimble Storage’s technology leadership with HPE’s global distribution strength, strong brand, and enterprise relationships, we’re creating expansion opportunities for the combined company.”

http://www.hpe.com

Northeast region operator FirstLight to acquire FLTG serving New York and Pennsylvania

FirstLight Fiber, a fibre bandwidth infrastructure services provider operating in New York and northern New England, announced its intent to acquire Finger Lakes Technologies Group (FLTG), a subsidiary of Trumansburg Telephone Company (TTC) that provides data, Internet and voice solutions to business customers across New York and Pennsylvania.

The company stated that the acquisition of FLTG is intended to strengthen FirstLight's position as a leading fibre communications provider in the Northeast region. The transaction will combine FLTG's privately owned fibre network, which spans nearly 2,500 route miles in New York state and Pennsylvania, with FirstLight's 9,500-plus route mile fibre network and data, Internet, data centre, cloud and voice services.

Through the transaction, FirstLight will be able to offer increased fibre density in the upstate New York area, and expand its service offering in the northern Pennsylvania region. Headquartered in Victor, FLTG and its parent companies employ 140 people, with offices in Buffalo, Binghamton, Norwich, Phelps, Romulus and Trumansburg.

Based in Albany, New York, FirstLight provides fibre data, Internet, data centre and voice services to enterprise and carrier customers throughout the Northeast, connecting more than 5,000 locations to services and with a further 20,000 locations serviceable over its fibre network.

FirstLight offers a portfolio of high bandwidth connectivity solutions including Ethernet, wavelength and dark fibre services, as well as data centre, cloud and voice services. Customers includes national cellular providers and wireline carriers, enterprises, the education sector and local and state governments.

The transaction is expected to close in the third quarter of 2017, following the satisfaction of customary regulatory and shareholder approvals. Financial terms of the transaction were not disclosed.

https://www.firstlight.net/


  • In January, FirstLight, a company of Oak Hill Capital Partners, completed similar transactions with Oxford Networks and Sovernet Communications. Oak Hill Capital Partners completed its acquisition of Oxford Networks and combined the operations with FirstLight, with Novacap, Bank Street Capital Partners and Riverside Partners continuing as minority investors in the combined company. The Sovernet transaction is expected to close early in 2017 following receipt of customary regulatory approvals.


Sunday, March 5, 2017

EXFO Acquires Ontology Systems for Network Topology Discovery

EXFO has acquired privately held Ontology Systems, which specializes in real-time network topology discovery and service-chain mapping, for US$7.6 million, net of cash.

UK-based Ontology Systems uses graph-data and semantic searches to build real-time views of network services and related network elements. Network functions virtualization (NFV) and software defined networking (SDN) technologies render communications infrastructures highly agile to deploy new services on the fly. This has created the need for an automated network inventory solution fully integrated with probing agents to accelerate fault discovery, root-cause analysis and eventually closed-loop automation in hybrid physical-virtual environments. The company generated approximately US$4.0 million in revenue during the last 12 months, including sales to tier-1 CSPs. The acquisition is expected to be neutral to EXFO's adjusted EBITDA in fiscal 2017 and accretive thereafter.

EXFO said the combination of Ontology Systems' expertise in mapping complex, cross-domain, multi-layer network topologies with its end-to-end service assurance and real-time 3D analytics solutions will deliver a truly comprehensive view across physical, virtual and hybrid networks.

"This strategic acquisition uniquely positions EXFO with agile, real-time visualization and troubleshooting solutions that enable communications service providers (CSPs) to manage their networks more efficiently and ensure heightened quality of experience and scalability for next-generation networks, which will be hybrid in nature for many years to come," said Germain Lamonde, EXFO's Founder, Chairman and CEO. "Combining EXFO's physical and virtual probes and real-time analytics solution, with Ontology Systems' unique mapping methodology, delivers an unmatched value proposition for monitoring and managing next-generation networks. Based on early discussions with CSPs, this new offering is resonating very strongly with them, since they are striving to improve customer experience while becoming more agile and cost-efficient."

http://www.exfo.com

Thursday, March 2, 2017

Palo Alto Networks Buys LightCyber for $105M

Palo Alto Networks completed its acquisition of LightCyber, a privately held cybersecurity company that offers highly automated and accurate behavioral analytics technology. Palo Alto Networks paid $105 million in cash.

LightCyber leverages machine learning to quickly, efficiently and accurately identify attacks based on identifying behavioral anomalies inside the network.

Palo Alto Networks will continue to offer the LightCyber products and support existing customer implementations while it engineers the technology into the Palo Alto Networks Next-Generation Security Platform by the end of the calendar year.

"The LightCyber team's vision to bring automation and machine learning to bear in addressing the very difficult task of identifying otherwise undetected and often very sophisticated attacks inside the network is well-aligned with our platform approach. This technology will complement the existing automated threat prevention capabilities of our platform to help organizations not only improve but also scale their security protections to prevent cyber breaches," stated Mark McLaughlin, chairman and CEO of Palo Alto Networks.

https://www.paloaltonetworks.com/

Wednesday, March 1, 2017

Equinix Expands Zurich Data Center Campus with Acquisition

Equinix will acquire ICT-Center AG, Zurich's data center operating business in Zurich, Switzerland. The deal was valued at under $5 million.

The facility, which is adjacent to Equinix's existing Zurich International Business Exchange™ (IBX®) data centers – ZH2 and ZH4, will add approximately 60 cabinets of sold capacity and a total colocation space of approximately 230 cabs. Equinix noted that the data center currently has a large number of network customers, which further increases network density at its Zurich campus, as well as global enterprises and financial services companies.

Equinix's Zurich data centers (ZH1, ZH2, ZH4, ZH5) are tethered together forming a campus environment.  The company says customers at its Zurich campus can reach 90 percent of Europe within 20ms.

http://www.equinix.com

Wednesday, February 22, 2017

ARRIS to Acquire Ruckus Wireless and ICX Switch Business for $800M from Brocade

ARRIS agreed to acquire Brocade Communication Systems' Ruckus Wireless and ICX Switch business for $800 million in cash, plus the additional cost of unvested employee stock awards, following the closing of Broadcom's acquisition of Brocade.

ARRIS expects the acquisition to be accretive to its Non-GAAP earnings per share in the first 12 months. The deal is contingent on Broadcom closing its acquisition of Brocade, previously announced on November 2, 2016 and approved by Brocade shareholders on January 26, 2017. Broadcom presently expects to close the Brocade acquisition in its third fiscal quarter ending July 30, 2017.

ARRIS said the deal expands its leadership in converged wired and wireless networking technologies beyond the home into the education, public venue, enterprise, hospitality, and MDU segments.  ARRIS plans to establish a dedicated business unit within the company focused on innovative wireless networking and wired switching technology to address evolving and emerging needs across a number of vertical markets. The business unit will be led by current Ruckus COO, Dan Rabinovitsj.

"We are building upon our successful history of making investments that significantly grow our business and create value for our customers, employees, shareholders and partners," said Bruce McClelland, ARRIS CEO. "Driven by ever-growing demand for high-speed, reliable, and effortless connectivity, service providers and enterprises will continually invest in their wired and wireless networks. The next five years will see exciting changes as every service provider will become a wireless operator of some fashion. Enterprises and venues will upgrade their broadband networks to provide new innovative value-added services and faster, more seamless internet access."

"We have a history of partnering with Ruckus and the talented employees that created this powerful brand and platform. We are excited to welcome about 1,600 new employees and an extensive network of enterprise channel partners to the ARRIS family," added McClelland.

http://ir.arris.com/phoenix.zhtml?c=87823&p=irol-newsArticle&ID=2248392

Brocade to Acquire Ruckus Wireless for $1.5 Billion


Brocade agreed to acquire Ruckus Wireless in a deal valued at approximately $1.5 billion, consisting of $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock. Ruckus' wireless products add to Brocade's enterprise portfolio and will also significantly strengthen Brocade's strategic presence in the broader service provider space. Ruckus has over $370 million in annual revenue and over 1,000 employees w

OVH Acquires Data Center in Oregon, Continuing U.S. Expansion

OVH announced its acquisition of a new data center facility in Hillsboro, Oregon. The name of the seller and terms of the deal were not disclosed.

The Hillsboro data center will house about 80,000 servers in 112,500 square feet. The facility joins Vint Hill, Virginia as OVH's second US data center, with a third North American data center located in Canada.

OVH said the expansion enables it to support its more than one million customers and respond to the growing demand for outsourced digital infrastructures throughout the world.

OVH now has 23 data centers around the world in 11 countries, spanning four continents.

“For years, leading tech companies have been trying to figure out how to cool their data centers for less money,” said Pascal Jaillon, Vice President of Research & Development for OVH US. “Legacy data centers have been using expensive forced air conditioning to cool servers. OVH’s innovation in data center cooling is just the first of many that will be introduced in this growing market.”

https://www.ovh.com/us/discover

Tuesday, February 21, 2017

Sweden's EQT Investment Firm to Buy Lumos Networks for $950 Million

Lumos Networks, a fibre-based service provider in the Mid-Atlantic region, announced that it has entered into a definitive agreement to be acquired by the EQT Infrastructure investment strategy for $18.00 per share, representing an enterprise value of approximately $950 million.

Under the terms of the agreement, EQT Infrastructure will acquire all of Lumos Networks' common stock for $18.00 per share, representing a premium of 18.2% to the Lumos Networks closing price of $15.23 on February 17, 2017. The offer price also represents a 34.9% premium to the volume-weighted price average over the last 12 months of $13.35 and a 16.5% premium to $15.45, the average closing price for the past 20 trading days.

Lumos Networks serves carrier, enterprise and data centre customers, offering end-to-end connectivity in 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. It has a fibre network of 9,204 fibre route miles and 475,507 total fibre strand miles that connects 1,297 fibre-to-the-cell sites, 1,642 FTTC connections, 36 data centres, including 7 company owned colocation facilities, 1,984 on-net buildings and around 3,300 on-net locations.

Recently, Lumos announced it had acquired Charlotte, North Carolina based DC74 Data Centers for $23.5 to $28.5 million, depending on future growth earn-out projections. It also recently announced closing of its acquisition of Clarity Communications, with a 730 mile fibre network with 75 on-net locations, mainly in North Carolina.

EQT stated that the transaction has been approved by all voting members of the board of directors. Completion of the transaction, subject to shareholder approval, regulatory approval and other customary closing conditions,
is expected during the third quarter of 2017.

EQT, based in Sweden, is an alternative investments firm with approximately Euro 31 billion in raised capital in 21 funds with portfolio companies in Europe, Asia and the U.S. Portfolio companies include Norwegian broadband provider Broadnet, IP-Only, a provider of data communications and data centre services in Sweden, subsea telecom infrastructure provider IslaLink.

Wednesday, February 15, 2017

XTERA Communications Acquired by H.I.G. Capital

H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with over €20 billion of equity capital under management, has acquired substantially all the assets of Xtera Communications, a supplier of sub-sea fiber optic solutions. Financial terms were not disclosed.

H.I.G. previously provided debtor-in-possession financing to the Xtera debtors in connection with the chapter 11 case.

Established in 1998 and based in the UK (Harold Wood, Essex) and the US (Allen, Texas), Xtera supplies un-repeatered and repeatered sub-sea systems, using high performance optical amplifiers to carry data. Under H.I.G.’s ownership, Xtera’s management and technical team will remain at the helm of the business, focused on successfully executing key existing customer contracts and expanding the business in the rapidly growing markets it serves with a clear roadmap of disruptive product launches.

Carl Harring, Managing Director at H.I.G. Capital commented: “We believe Xtera has considerable growth potential as an independent, well-funded business with a new ownership structure. Its world class IP protected technology is not only differentiated and superior to that of its competitors, but it is delivered to an impressive range of global clients at a cost-effective price point. We are excited to be working with this industry-leading team and our immediate focus will be to work with them to deliver and build on existing contracts and over the long-term, provide the financial support to enable the company to fully capitalise on its technology with a broader base of customers.”

Stuart Barnes, Founder of Xtera, added: “We are delighted to announce our new partnership with H.I.G. Capital, which has previously invested in the fiber-optics sector and has a proven understanding of how to grow specialist industrial suppliers into market-leading players. We share the same vision of strengthening Xtera’s footprint in the future.”

http://www.xtera.com/

MetaSwitch Acquires OpenCloud for Virtualized Telecom Service Layer

Metaswitch has acquired privately-held OpenCloud, which offers a virtualized service layer that is deployed within SS7 and All-IP networks to accelerate the transition of IN-based mobile voice services to IMS. Financial terms were not disclosed.

OpenCloud's Rhino Telecom Application Server (TAS) service layer is currently in use by more than 60 operators worldwide, including multi-national groups (T-Mobile, Vodafone, for example), large operators (Telkomsel – Indonesia), independent operators (Free Mobile – France) and MVNOs (AinaCom – Finland), mobile, wireline and converged operators (BT). The platform offers an extensive set of APIs and SDKs, available from partners through RhinoMarket.  OpenCloud is headquartered in Cambridge UK, and has offices in New Zealand, Spain, Singapore, Indonesia and Brazil.

Metaswitch said the acquisition enables it to offer global service providers a pure-play software VoLTE solution, adding the market-leading Rhino Telecom Application Server (TAS) to its Clearwater IMS Core and Perimeta SBC.

“The acquisition of OpenCloud is a key part of our portfolio expansion strategy to fully serve both mobile and converged network operators,” said Metaswitch CEO Martin Lund. “Global operators have long looked to Metaswitch for innovative communication solutions and we are now perfectly placed to ensure the rapid deployment of VoLTE today, and to quickly deliver differentiated services on the path to 5G.”

“Metaswitch is the ideal strategic and cultural fit for OpenCloud and our customers,” added OpenCloud CEO Ian Clarke. “Both companies have outstanding engineering teams, a commitment to continued leadership in virtualized network functions, proven mobile service solutions and a dedication to advancing the cause of our mobile customers, worldwide.”

https://www.opencloud.com
http://www.metaswitch.com

IDT to acquire GigPeak for $250m for Optical Interconnects

Integrated Device Technology (IDT) of San Jose, California and GigPeak, a supplier of semiconductor ICs and software for high-speed connectivity and video compression over the network and in the cloud, announced that they have signed a definitive agreement for IDT to acquire GigPeak for $3.08 per share, or approximately $250 million, in cash, representing a premium of approximately 22% to GigPeak's closing share price on February 10th.

Under the terms of the merger agreement, IDT will launch a tender offer to acquire all of the issued and outstanding common stock of GigPeak for $3.08 per share. The boards of directors of both companies have unanimously approved the terms of the agreement and the GigPeak board has resolved to recommend that stockholders accept the offer.

The combination of IDT and GigPeak is projected to add approximately $16 million of quarterly revenue at a 70% non-GAAP gross margin and to be accretive to earnings in first full quarter following closing of the transaction.

The acquisition of GigPeak will provide IDT with an optical interconnect product line and technology business that is complementary to its established position as a supplier of real-time interconnect products. More specifically, the combination is expected to extend IDT's leading position as a supplier of communications and cloud data centre products

IDT noted that GigPeak's optical interface products have been widely adopted by major companies in the communications, cloud data centre, and military/aviation markets. With the acquisition, IDT will be able to provide ultra-high speed data connectivity products featuring electrical, RF and optical technologies.

The transaction is not subject to a financing condition, although it is subject to customary conditions including the tender of the majority of the outstanding GigPeak shares; it is anticipated that the acquisition will close the second calendar quarter of 2017.

Separately, GigPeak reported financial results for its fourth quarter and fiscal year 2016, ended December 31, 2016, including fourth quarter revenue of $16.2 million, compared with $15.8 million in the third quarter and $11.1 million in the fourth quarter 2015. GAAP net income in the fourth quarter was $1.5 million, compared with net income of $0.7 million in the third quarter and net income of $0.3 million for the 2015 fourth quarter.

Full year 2016 revenue was $58.7 million, versus $40.4 million in 2015, with GAAP net income of $2.2 million, compared with net income of $1.2 million in 2015.

For its most recent third quarter ended January 1, 2017, IDT reported revenue of $176.36 million, versus $184.06 million in the second quarter and $177.61 million in the prior year third quarter. Net income for the third quarter was $34.74 million, compared with net income of $24.59 million in the second quarter and net income of $32.54 million in the prior year third quarter.

http://ir.gigpeak.com/phoenix.zhtml?c=225697&p=irol-newsArticle&ID=2245665

Friday, February 10, 2017

Nokia to Acquire Comptel, Furthering its Software Portfolio

Nokia agreed to acquire Comptel Corporation, a telecom software company based in Helsinki, Finland, for approximately EUR 347 million in cash.

Comptel offers solutions for catalogue-driven service orchestration and fulfillment, intelligent data processing, customer engagement, and agile service monetization. It processes 20 percent of world's mobile usage data every day, orchestrates communications and digital services for more than two billion end-users daily and its largest customer has around 300 million subscribers. In 2015, Comptel's revenue was EUR 98 million with an 8.7 percent operating margin.  The company was founded in 1986 and has approximately 800 employees. Outside of Finland its major sites include Bulgaria, Malaysia, India, the United Kingdom and Norway.

Nokia said the deal will advance its software strategy and provide service providers with a comprehensive solution to design, deliver, orchestrate and assure communications and digital services across physical, virtual and hybrid networks. Nokia's ambition is to build a standalone software business at scale by expanding and strengthening its software portfolio and go-to-market capabilities with additional sales capacity and a strategic partner network.

The combination of Nokia's Service Assurance portfolio and Comptel's Service Orchestration portfolio would enable a dynamic closed loop between service assurance and fulfillment that simplifies management of complex heterogeneous networks. When combined with Nokia's Cloudband(TM) and Nuage(TM) portfolios, Nokia would be able to provide customers with complete, end-to-end orchestration of complex Network Function Virtualization (NFV) and Software Defined Networking (SDN) deployments.

"Nokia is committed to building its software business and is backing its commitment with strategic investments. The timing of the Comptel purchase is important as our customers are changing the way they build and operate their networks.  They are turning to software to provide more intelligence, automate more of their operations, and realize the efficiency gains that virtualization promises. We want to help them by offering one of the industry's broadest and most advanced portfolios. Comptel helps us do that," stated Bhaskar Gorti, president of Nokia's Applications & Analytics business group.

http://www.nokia.com
http://www.comptel.com/

See also