Showing posts with label Mergers & acquisitions. Show all posts
Showing posts with label Mergers & acquisitions. Show all posts

Wednesday, May 9, 2018

Vodafone to acquire Liberty Global operations for $22.7 billion

Vodafone agreed to acquire Liberty Global's operations in Germany, Hungary, Romania and the Czech Republic in a deal valued at approximately €19.0 billion ($22.7 billion). The combination is also notable for bringing together mobile infrastructure with cable operations.

Vodafone said the acquisition accelerates its convergence story and strengthens its position as a leading next generation infrastructure owner in Europe. After the merger is complete, Vodafone will have 54 million cable/fibre homes ‘on-net’ and a total NGN reach of 110 million homes and businesses, including wholesale arrangements.

In Germany, the combination of Vodafone and Unitymedia’s non-overlapping regional operations will establish a strong second national provider of digital infrastructure in the German market. The ambition is to bring Gigabit connections to around 25 million German homes (62% of total German households) by 2022.

In eastern Europe, the Liberty Global properties will complement Vodafone’s existing mobile operations in the Czech Republic, Hungary and Romania. In these markets, the combined businesses will reach over 6.4 million homes (39% of total households) and will serve 15.8 million
mobile, 1.8 million broadband, and 2.1 million TV customers.

Liberty Global said these four businesses represent approximately 28% of its consolidated 2017 operating cash flow (OCF), not including its 50% share of OCF from the VodafoneZiggo joint venture in the Netherlands. After completion of the transaction, Liberty Global will continue to be Europe’s leading cable television and broadband provider, with consolidated operations in the United Kingdom, Ireland, Belgium, Switzerland, Poland
and Slovakia. Together, these country operations reach 24 million homes, account for 26 million video, broadband and fixed-line telephony subscribers

The sale price represents a total enterprise value for all four businesses combined of 11.5 times 2017 adjusted Segment OCF, or approximately 24.0 times 2017 operating free cash flow (“OFCF”), with an implied adjusted Segment OCF multiple for Liberty Global’s German operation of 12.0 times.

"This transaction will create the first truly converged pan-European champion of competition. It represents a step change in Europe’s transition to a Gigabit Society and a transformative combination for Vodafone that will generate significant value for shareholders. We are committed to accelerating and deepening investment in next generation mobile and fixed networks, building on Vodafone’s track record of ensuring that customers benefit from the choice of a strong and sustainable challenger to dominant incumbent operators. Vodafone will become Europe’s leading next generation network owner, serving the largest number of mobile customers and households across the EU.”

Sunday, March 25, 2018

IAR Systems acquires Secure Thingz

IAR Systems Group AB, based in Uppsala, Sweden agreed to acquire Secure Thingz, a provider of advanced security solutions for embedded systems in the Internet of Things (IoT).

IAR Systems, which already owned approximately 20 percent of the shares in Secure Thingz, will pay approximately 230 MSEK (US$27.9 million) for the remaining 80%. IAR will finance the acquisition either with support from a credit facility or by a directed share issue.

Secure Thingz, which is based in Cambridge, UK and with an office in San Jose, California, was founded in 2016 by staff from ARM. The company develops and sells products and services for implementation of embedded security in connected devices. The company has provided security solutions for the Renesas Synergy Platform through its Secure Deploy platform offerings. Secure Thingz is headed by Haydn Povey, who previously led Arm's strategy for security across mobile, enterprise and IoT domains. Before that, Haydn Povey led the development and introduction of the Arm Cortex-M microprocessor family, which now dominates the embedded and IoT-markets and whose large market impact enabled the rapid adoption of 32-bit microcontroller technology around the globe. Haydn Povey will continue to operate Secure Thingz as CEO.

In February 2018, IAR Systems and Secure Thingz introduced a jointly developed product called Embedded Trust that enables companies to safeguard intellectual property against overproduction and counterfeiting, manage software updates in a robust way, and protect end users from malware intrusion and theft or loss of data.

"With the increasing number of connected devices, our customers are facing new challenges. One of the major challenges is how to deliver secure products in a world where even minor failures can lead to major consequences," comments Stefan Skarin, CEO, IAR Systems. "As a first step, our customers need help mainly protecting themselves against overproduction and IP theft, and we are responding to this need with a new offering that provides possibilities to create modern workflow where security is included from start. The acquisition of Secure Thingz is a step in our increased ambition for future growth through new technology, new markets, new business models, and new relationships. It also secures our position as a frontrunner in a changing industry."

"We are very excited to become a part of the highly competent IAR Systems team," says Haydn Povey, CEO, Secure Thingz. "We have already established a smooth collaboration with the development of Embedded Trust, and our combined resources within technology, sales and customer support will enable us to accelerate the development of the innovative security solutions that the digital products market so desperately needs."

Saturday, March 24, 2018

MobilSense acquires MobilePhire

MobilSense Technologies, a Los Angeles-based provider of managed mobility services (MMS) software, agreed to acquire MobilePhire, a mobile data management (MoDM) company. Financial terms were not disclosed.

MobilePhire, which was created by ex AT&T employees, enables real-time analytics and policy controls for data users without the need for installed agents on monitored mobile devices.

MobileSense said this acquisition will extend its capabilities for controlling data consumption on cellular networks.

MobilSense's automation software helps corporate customers manage mobility expenses. The company says its 700+ customers have accumulated over $250 million in mobility savings.

With the integration of MobilePhire, customers can now experience, from a single vendor, full-service MMS capabilities while also securely viewing and controlling mobile network data usage.

"In our quest to find a solution to our clients' growing needs for granular data control capabilities on employee devices," indicates Dave Stevens, CEO of MobilSense, "MobilePhire was the only company with a primary mission and objective to build a cellular network firewall solution with tools to block access to non-business sites and limit uncontrolled employee data usage.  MDM vendors have attempted to address the data management challenge with an emphasis on limiting the installation of apps on employee devices. This is only a partial solution that lacks the effectiveness of embedded control points within the carrier network and misses the mark on delivering visibility to actual site usage details."


Monday, January 8, 2018

GTT acquires Amsterdam-based Custom Connect

GTT has acquired Custom Connect, an Amsterdam-headquartered provider of high-speed network connectivity serving multinational enterprises and financial trading firms. Financial terms were not disclosed.

Custom Connect, which was founded by Olav van Doorn and Jan Willem Meijer, operates a carrier-neutral MPLS/IP network that integrates SD-WAN and public and private clouds alongside existing data centers, offices, and branches. Its range of services includes low-latency connectivity to major financial exchanges, trading desks, and banks via SD-WAN integration with other carriers.

“The acquisition of Custom Connect extends GTT’s network and strengthens our service offerings in high growth financial markets,” said Rick Calder, GTT president and CEO. “These enhanced capabilities reinforce GTT’s market leadership in cloud networking and our commitment to connecting people – across organizations and around the world.”

  • In 2017, GTT acquired Global Capacity, a provider of enterprise network connectivity solutions, for $100 million in cash and 1.85 million shares of GTT common stock, to be issued to the sellers at closing. Global Capacity, which was based in Waltham, Mass., specialized in a range of enterprise network issues including difficulty in load sharing traffic across a mix of access connections, complex, static and manual network configurations that inhibit mapping to business requirements and lack of application visibility and control over connections.

Thursday, January 4, 2018

Mavenir acquires Aquto for mobile sponsored-data platform

Mavenir has acquired Aquto, a start-up based in Boston that offers a cloud-based sponsored data platform that helps mobile operators to increase marketing and advertising revenue. Financial terms were not disclosed.

Sponsored data enables users to gain cellular data connectivity through 3rd party sponsorships. Aquto said operators can use data sponsorships as a form of currency to improve mobile engagement across any type of mobile campaign (app downloads, in-app engagement, media, etc.).

Aquto's SaaS Platform Distribution is available either as a white-label Sponsored Data platform to enable single MNO or group of MNOs or as Global Sponsored Data Platform connected to all MNOs.

“What’s critical to the subscriber is mobile data connectivity and what’s important to carriers is monetization and loyalty,” said Pardeep Kohli. “In this marketplace, operators can monetize sponsors through the value exchange model - where mobile data is the primary currency. Enterprises can attach data rewards to a specific call to action (CTA). Users/consumers, when provided with sponsored data services, engage more with the operator and ultimately buy more data from the operator (i.e. reduced churn by 5% and increased ARPU by 15% for prepaid subscribers).”

Aquto was co-founded and led by Susie Kim Riley. Investors in Aquto included Matrix Partners, North Bridge Venture Partners, Iris Capital, and STC Ventures.

Thursday, August 10, 2017

Luna sells optical receivers business to MACOM for $29.5m

Luna Innovations, supplier of products for the aerospace, automotive, energy, defence and telecommunications markets, announced that MACOM Technology Solutions has agreed to buy the assets and operations related to its high-speed optical receivers (HSOR) business.

The purchase price includes $29.5 million to be paid in cash at closing and an additional $4.0 million to be held in escrow until December 15, 2018 for possible working capital adjustments to the purchase price and potential satisfaction of certain post-closing indemnification obligations.

The sale includes the operations associated with Luna’s development, manufacturing and sales of products including high-speed integrated coherent receivers and photodiodes. Luna originally acquired these operations as part of its merger with Advanced Photonix, Inc. (API), in May 2015. The assets and employees associated with Luna’s Terahertz operations are not being transferred as part of this transaction.

Through the transaction, employees associated with the company’s HSOR operations and administration in the company's location in Ann Arbor, Michigan, will transfer to MACOM. The Picometrix line of high-speed optical receivers and optical-to-electrical converters serve the global telecommunications, data centre and manufacturing testing industries.

Luna noted that it intends to use a portion of the proceeds from the transaction to invest in expanding its fibre optic sensing product offering.

Regarding the acquisition, John Croteau, MACOM president and CEO, said, "Similar to MACOM's high performance analogue and 25 Gbit/s laser products, Luna's high speed optical receiver products and technology are well-aligned with its previously-announced growth strategy in cloud data centres and other high-speed networking markets".



  • Earlier this year, Luna Innovations announced that its Picometrix unit had entered into a vendor managed inventory (VMI) agreement with a leading Chinese provider of telecoms equipment and network solutions, under which Picometrix was to maintain in Hong Kong a dedicated inventory of 100 Gbit/s integrated coherent receivers and other products. It also noted it had received a new order for coherent receivers for 100 Gbit/s transport network equipment valued at approximately $1.4 million.

Thursday, August 3, 2017

Verizon to acquire WOW! for $225m for Chicago Fiber Network

WideOpenWest (WOW!), a provider of Internet, cable TV and voice services based in Englewood, Colorado, announced that it has entered into a definitive agreement to sell a portion of its fibre network in its Chicago market to a subsidiary of Verizon for $225 million in cash.

In addition, WOW! and Verizon will enter into a new agreement pursuant to which WOW! will complete the build-out of the network in exchange for a payment of approximately $50 million (WOW!'s estimated cost for completion of the network build-out), payable as the remaining network elements are completed. The network, expected to be completed in the second half of 2018, will provide backhaul services to over 500 macro-cell wireless sites and more than 500 small-cell sites.

Through the agreement, Verizon will gain a high-capacity fibre network designed to support multi-use services. The company noted that the network already connects Verizon Wireless macro towers and small cells, and will reduce its leasing costs via fibre connectivity to more than 500 macro-cell wireless sites and 500 small-cell wireless sites.

WOW! noted that the transaction is subject to receipt of various consents and approvals, as well as other customary closing conditions, and is expected to close early in the first quarter of next year. WOW! stated that it plans to use a portion of the proceeds from the transaction to pay-down existing debt balances.

Commenting on the transaction, Hans Vestberg, Verizon president of Network and Technology, said, "Following recent agreements with Corning, Prysmian and Straight Path, this is another example of Verizon's commitment to invest in multi-use fibre to provide customers with next-generation broadband services, such as smart cities and 5G… this acquisition will also help create comprehensive digital solutions for small- and medium-business and enterprise customers".


Tuesday, August 1, 2017

Windstream closes acquisition of Broadview Networks for $227.5m

Windstream announced that it has completed the acquisition of Broadview Networks through a $227.5 million all-cash transaction originally announced April 13th, 2017.

Windstream also announced that following completion of the transaction, Brian Crotty, chief operating officer of Broadview, has been named president of its mid-market and small business division. In addition, the following senior Broadview executives are joining Windstream:

  • Mario Deriggi as senior vice president of sales.
  • Stephen Farkouh as senior vice president of cloud technology and platform development.
  • Sanjay Patel as vice president of platform development.
  • Tim Bell as vice president of integration management and Broadview operations.
Windstream stated that after the acquisition of Broadview it expects to realise approximately $30 million in annual operating synergies within two years. The transaction is also expected to improve Windstream's balance sheet by reducing leverage through the synergies and will be accretive to free cash flow in the first year.

Broadview Networks, headquartered in Rye Brook, New York, is a network-based business communications provider serving SMB customers with local and long-distance voice and data communications, patented hosted VoIP systems, data services and a suite of managed and professional services. It also offers a portfolio of bundled, hosted IP phone and cloud computing services. It also offers a suite of cloud-based services under the OfficeSuite UC brand.

Regarding the transaction, Tony Thomas, president and CEO of Windstream, commented, "The addition of Broadview advances Windstream's strategy to differentiate by delivering a superior customer experience using disruptive technologies… Broadview's unified communications solution, OfficeSuite, complements Windstream's SD-WAN offering… both are highly scalable, easy to customise and less expensive to deploy than traditional solutions".

Monday, July 31, 2017

I Squared Capital to acquire Hutchison Global for $1.86bn

I Squared Capital, an independent global infrastructure investment manager, announced an agreement, through its ISQ Global Infrastructure Fund II, to acquire a 100% interest in Hutchison Global Communications Investment Holding (HGC) from Hutchison Telecommunications Hong Kong Holdings (HTHKH), a part of CK Hutchison Holdings, for approximately HKD14.5 billion (approximately $1.86 billion).

HGC is a major fixed-line service provider addressing fixed and mobile carriers, OTT service providers, corporate, residential and data centres in Hong Kong and worldwide. The company's 1.4-million-km fibre network connects to over 14,200 buildings; it is also one of Hong Kong's largest WiFi service providers operating over 25,000 hot spots. HGC's international network includes four key land routes into mainland China, as well as multiple submarine and terrestrial cable systems.

HTHKH stated that the transaction is intended to enable it to focus in its core business of serving mobile customers, and that it plans to use the proceeds of the transaction for working capital and to invest in its mobile business.

I Squared Capital noted that a significant portion of HGC's revenue is generated through long-term contracts with a diverse customers base that includes the major mobile providers in the region. HGC Group is also working to develop cloud computing services and delivering high-speed WiFi service under the HGC On Air brand.

I Squared stated that the acquisition is expected to close by October 2017.

I Squared Capital, based in New York, is an independent global infrastructure investment manager that focuses on energy, utilities and transport in the Americas, Europe, and select high growth economies. As well as New York, the company has offices in Houston, London, New Delhi, Hong Kong and Singapore.

Commenting on the transaction, Gautam Bhandari, partner at I Squared Capital, said, "With I Squared Capital's investment, HGC will continue to provide the same quality of service that mobile telecommunication providers, corporate and residential customers have come to expect… fresh capital will also enable the company to develop new solutions to meet the ever-increasing demand for high-speed information infrastructure throughout the region and beyond".


Friday, July 28, 2017

ExteNet to acquire Axiom Fiber Networks

ExteNet Systems based in Lisle, Illinois, a provider of distributed network systems (DNS) enabling cellular, wireless and broadband connectivity, announced it entered into agreement to acquire New York-based MetroFiber, d/b/a Axiom Fiber Networks, on undisclosed terms.

Axiom Fiber Networks is a telecommunications infrastructure services provider operating in the greater New York City metro area. The acquisition by ExteNet will increase the company's fibre footprint in the New York City metro area.

In 2016, Axiom Fiber announced it has entered into a technology alliance with LightRiver Technologies, the company delivering Factory Built Network design and commissioning services. By partnering with LightRiver, Axiom Fiber, which delivers telecom infrastructure services over its fibre network to carrier and enterprise customers across New York City, expands its ability to provide flexible and scalable networking solutions that leverage its fibre infrastructure.

Axiom Fiber offers dark fibre and custom networking solutions, with a focus on providing efficient solutions with flexible business terms. In 2015, the company established a PoP at Sabey Data Centers' Intergate.Manhattan facility, located at 375 Pearl Street in lower Manhattan, and with Telx at its three New York City facilities, 60 Hudson, 111 8th Avenue and 32 Avenue of Americas.

ExteNet Systems designs, builds, owns and operates distributed networks (DNS) for use by wireless carriers, broadband providers, IoT companies, property owners and communities across the U.S. The company provides scalable infrastructure designed to enhance wireless and broadband services in both outdoor and indoor environments using fibre-based distributed antenna systems (DAS), remote radio heads (RRH), small cells, WiFi and virtualised EPC (vEPC) technologies.

ExteNet's outdoor distributed networks are deployed in urban, suburban and rural environments, while its indoor distributed networks are deployed in property verticals including sports and entertainment venues, hotels and convention centres, commercial office space, healthcare facilities and transit systems.


Tuesday, July 11, 2017

Cogeco to acquire MetroCast cable systems for $1.4bn

Cogeco Communications, the 8th largest cable operator in North America, announced that its subsidiary serving the U.S., Atlantic Broadband, has entered into a definitive agreement with Harron Communications to purchase all of its cable systems operating under the MetroCast brand.

Under the terms of the agreement, substantially all of the assets of MetroCast will be purchased for $1.4 billion, while in conjunction with the transaction Atlantic Broadband expects to realise tax benefits with a present value of approximately $310 million. After adjusting for tax benefits, the purchase price represents a multiple of approximately 9x 2017 forecast adjusted EBITDA for the business being acquired.

As part of the transaction, Caisse de dépôt et placement du Québec (CDPQ) has committed a $315 million equity investment for a 21% interest in Atlantic Broadband's holding company, with the remaining balance of the purchase price and transaction costs to be financed through a committed secured debt financing provided by two banks at Atlantic Broadband.

MetroCast's networks pass 236,000 homes and businesses in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and serve approximately 120,000 Internet, 76,000 video and 37,000 telephony customers. For the calendar year 2017 the company's revenue is expected to be approximately $230 million, with adjusted EBITDA projected to be approximately $121 million.

Cogeco stated that the transaction is intended to add scale in the American broadband services segment, with Atlantic Broadband's primary service units (PSU) to increase from approximately 602,000 to a total of 835,000 after the acquisition. In addition, MetroCast's systems are mainly serve non-metropolitan markets with attractive demographic profiles and it will be able to leverage Atlantic Broadband's product and sales capabilities to expand the customer base.

The MetroCast network is fully digital and comprises 860 MHz or FTTH infrastructure across 95% of the network and supports broadband speeds of 150 Mbit/s across the footprint. Atlantic Broadband is currently the 9th largest cable company in the U.S. serving around 239,000 Internet, video and voice customers and following the transaction will have a geographic footprint extending from Maine to Florida.

The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in January 2018.

Cogeco Communications is a major cable operator in North America, operating in Canada under the Cogeco Connexion name in Québec and Ontario, and in the U.S. through the Atlantic Broadband brand.


Regarding the transaction, Atlantic Broadband president and CEO Richard Shea said, "After the successful acquisition and integration of the MetroCast Connecticut system almost two years ago, Atlantic Broadband understands the sizable residential and business growth potential that it can expect with the remaining MetroCast systems".


AT&T completes acquisition of Vyatta network OS assets from Brocade

AT&T, which in early June announced it would acquire Vyatta, has completed its the acquisition of the Vyatta network operating system and associated assets of Brocade Communications Systems through an agreement that included the hiring of several dozen Brocade employees, mainly located in California and the UK.
The transaction includes the Vyatta network operating system and vRouter product line. AT&T gains the Vyatta network operating system, including its virtual network functions (VNFs) and distributed services platform, software under development as part of its unreleased product roadmap, existing software licenses and related patents and patent applications.

This acquisition is intended to strengthen AT&T's ability to deliver cloud or premises-based VNFs, beginning with its previously announced SD-WAN cloud service offered with VeloCloud that  was announced in October 2016. The Vyatta acquisition will also help AT&T to enhance its white box platform capabilities.


* In March this year AT&T completed a trial in partnership with other companies and industry groups to design and build white box switches designed to enable more efficient management of data traffic across its network. The trial involved vendors including Barefoot Networks, Broadcom, Delta Electronics, Edgecore Networks, Intel and SnapRoute.

* AT&T stated that the Vyatta platform will help continue to drive its network transformation, through which AT&T is aiming to virtualise and software-control 55% of its network by the end of 2017, rising to 75% by 2020.

Tuesday, June 6, 2017

Telstra acquires UK-based Company85

Australian incumbent telco Telstra announced that it has acquired Company85, a UK-based technology services business headquartered in London that offers data centre, workspace, cloud, security and network services.

Established in 2010 and based in London, Company85 has approximately 75 employees and focuses on providing services to major UK-based business and government customers including the BBC, NHS, Royal Mail and London City Airport, as well as multinational corporations including AstraZeneca, J.P. Morgan and Roche.

Company85 CEO Adrian Spink stated that the combination of Telstra's network and global reach and Company85’s technical capabilities and established relationships with CIOs and chief information security officers at large organisations was expected to create significant growth opportunities.

The acquisition aligns with Telstra's strategy of expanding its technology services business internationally, and is expected to significantly enhance the company's service offering for UK and European-based businesses and government sector customers.

Company85 originally operated under the Company-I name as a specialist data centre consultancy. The company became the UK and EMEA consulting arm of Symantec Global Services before a management buyout and in 2013 acquired XOR, a specialist provider of workspace and channel services. In 2015 it acquired DVS Channel Services, providing consulting for data, voice and security services.


Thursday, April 13, 2017

VMware to acquire Wavefront for Monitoring Technology

VMware, a major provider of cloud infrastructure and business mobility, announced an agreement to acquire Wavefront, developer of a metrics monitoring service for cloud and modern application environments based in Palo Alto, California, on undisclosed terms.

VMware noted that enterprises face growing challenges when monitoring applications, which comprise hundreds of microservices in containers with lifespans of seconds, across private and public clouds. To identify and resolve operational issues in dynamic cross-cloud environments, developers need new instrumentation for their applications and devops teams require advanced real-time analytics for their distributed systems to address problems before they impact the business.

Wavefront offers metrics monitoring designed to optimise clouds and modern applications by providing real-time operational insights based on millions of data points per second. Using the technology, operators and developers can interrogate real-time data streams to find ways to address issues, locate bottlenecks and test algorithms and models.

Provided as a cloud-hosted service, Wavefront ingests, stores, visualises and delivers alerts using streaming metric data from clouds and applications to help improve operational performance. Designed to scale to support the demands of large data centres, the service can measure, correlate and analyse across servers, devices, applications and end-users, as well as multiple public cloud and data centre attributes, SaaS, PaaS and IaaS environments and business metrics.

Wavefront's metrics monitoring capabilities will complement VMware's vRealize Operations platform for monitoring, troubleshooting and capacity planning across virtual environments. Through the combined offering, users will have a representation of their network, infrastructure and application environments utilising Wavefront with vRealize Network Insight, vRealize Operations and vRealize Log Insight.

Upon closing of the acquisition, which is expected to take place in the second quarter of this year, Wavefront will become part of the portfolio of VMware Software as a Service (SaaS) offerings. Additionally, VMware will leverage Wavefront's technology to advance the development of VMware Cross-Cloud Services, designed to help users manage and monitor modern application and their associated infrastructure across clouds.
http://www.vmware.com/company/news/releases.html

See also