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

Monday, June 25, 2018

AT&T to acquire AppNexus for its digital ad platform

AT&T agreed to acquire AppNexus, which operates a leading global advertising marketplace and provides enterprise products for digital advertising, Media reports valued the deal at $1.6 billion. 

AppNexus, which is based in New York City,  claims to have over 34,000 publishers and 177,000 brands in its marketplace, with 11.4 billion impressions transacted daily. This translates into 6 million queries processed per second, and 250 TB of data processed daily.

AppNexus will become a part of AT&T advertising & analytics, led by Brian Lesser, CEO.  which operates a leading global advertising marketplace and provides enterprise products for digital advertising – serving publishers, a
“Ad tech unites real-time analytics and technology with our premium TV and video content,” said Lesser. “So, we went out and found the strongest player in the space. AppNexus has scale of infrastructure, advanced technology and diverse talent. The combination of AT&T advertising & analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today.”

“Innovation is core to the heritage of both AT&T and AppNexus, and we have an exciting opportunity to chart the future course of advertising together,” said Brian O’Kelley, CEO, AppNexus. “Combining AT&T’s incredible assets with our technology, we will help brands and marketers power new advertising experiences for consumers. It’s what the market is asking for, and together we’re poised to deliver it.”

Tuesday, June 19, 2018

Cisco to acquire July Systems for location services platform

Cisco agreed to acquire July Systems, a start-up offering a cloud-based mobile experience and location services platform. Financial terms were not disclosed.

July Systems, which based in Burlingame, California with offices in Bangalore, India, has worked for several years as an OEM for Cisco Connected Mobile Experience (CMX). Cisco plans to add July Systems’ platform and business context capabilities to provide a unified solution on which partners and customers can build and deliver indoor location services for industries as diverse as healthcare, government, logistics, manufacturing, sports arenas, hotels, education and retail.

Cisco said the acquisitions supports its journey to intent-based networking.

The July Systems team will join Cisco’s Enterprise Networking Group led by Scott Harrell, senior vice president and general manager.

Saturday, June 2, 2018

Telecom Egypt acquires MENA cable for $90 million

Telecom Egypt announces that its 50% owned subsidiary, Egyptian International Submarine Cables Company (EISCC), will acquire the Middle East and North Africa Submarine Cable (MENA) for a total value of US$90 million from Orascom Telecom Media and Technology Holding S.A.E.

Telecom Egypt said the decision to acquire MENA Cable comes in line with its strategy to achieve a short-term return from this investment and to preserve the revenue stream of the submarine cable systems.

MENA Cable is licensed in Egypt and Italy to operate a submarine telecommunications system connecting Europe to the Middle East and South East Asia.

"The decision to acquire MENA Cable is one of the most important steps towards implementing the company’s strategic plan to ensure the sustainability of submarine cable revenues and reinforce the contribution of the USD revenue stream. The new cable will add to Telecom Egypt’s network of submarine cables fortifying TE’s network offering to the maximum number of routes between India and Europe as well as add a new gateway to Europe through Italy," stated Ahmed El Beheiry, Managing Director and Chief Executive Officer.

Thursday, May 31, 2018

Ciena to acquire Packet Design for network analytics and path computation

Ciena agreed to acquire privately-held Packet Design, a provider of network performance management software focused on Layer 3 network optimization, topology and route analytics. Financial terms were not disclosed.

Packet Design's portfolio includes Route Explorer, an IP/MPLS route analytics software that provides management visibility into routing behavior for all IGP and BGP protocols, Layer 2/3 VPNs, traffic engineering tunnels, segment routing and multicast with real-time monitoring, historical reporting, and what-if modeling capabilities.

Ciena said the acquisition will help accelerate its Blue Planet software strategy by extending its intelligent automation capabilities beyond Layers 0-2 and into IP with critical new capabilities to help customers optimize service delivery and maximize network utilization. Specifically, the combination of the Blue Planet software platform and Packet Design’s performance analytics and service path computation capabilities will form a unique, micro-services-based platform that delivers real-time analytics, optimization and orchestration capabilities to support the broadest range of closed-loop automation use cases across multi-layer, multi-vendor networks.

“Blue Planet is already one of the premier brands in the network automation space. The addition of Packet Design will enhance our position by enabling customers to realize networks that are more adaptive – capable of self-optimizing and self-healing for faster time-to-market for new services, more efficient and lower cost network operations, and the ability to deliver an overall better customer experience,” said Rick Hamilton, senior vice president of Global Software and Services at Ciena.


Wednesday, May 30, 2018

ExteNet Systems to acquire Hudson Fiber Network

ExteNet Systems, a private developer, owner and operator of distributed networks across the United States, agreed to acquire Hudson Fiber Network (HFN). Financial terms were not disclosed.

Hudson Fiber Network (HFN) is a data transport provider which has a significant metro fiber network in the greater New York City area and operates a national wide-area network with key international points of presence.


"We are pleased to announce our intention to acquire Hudson Fiber Network to accelerate growth of ExteNet’s Optical Network Solutions business,” said Ross Manire, President and CEO of ExteNet Systems. “We have served the northeast region, including New York City, for many years with our fiber, small cell and indoor network solutions. We plan to leverage the core competencies of both companies to offer our customers an expanded portfolio of carrier and enterprise solution offerings and rapidly expand into other major markets by leveraging ExteNet’s extensive fiber plant.”

Tuesday, May 29, 2018

KKR to acquire BMC for its enterprise software

KKR, a leading global investment firm, agreed to acquire BMC for an undisclosed sum. BMC is currently owned by a private investor group led by Bain Capital Private Equity and Golden Gate Capital together with GIC, Insight Venture Partners and Elliott Management.

Founded in 1980, BMC is a leading systems software provider which helps enterprise organizations manage and optimize information technology across cloud, hybrid, on-premise, and mainframe environments. The company claims more than 10,000 customers worldwide, including 92% of the Forbes® Global 100.

"With the support and partnership of our Investor Group, BMC significantly accelerated its innovation of new technologies and new go-to-market capabilities over the past five years," said Peter Leav, President and Chief Executive Officer of BMC. "Our growth outlook remains strong as BMC is competitively advantaged to continue to invest and win in the marketplace. Our customers can expect the BMC team to remain focused on providing innovative solutions and services with our expanding ecosystem of partners to help them succeed across changing enterprise environments. We are excited to embark on our next chapter with KKR as our partner."

"In an ever-changing IT environment that is only becoming more complex, companies that help simplify and manage this essential infrastructure for their enterprise customers play an increasingly important role," said Herald Chen, KKR Member and Head of the firm's Technology, Media & Telecom (TMT) industry team, and John Park, KKR Member. "With more than 10,000 customers and 6,000 employees, BMC is a global leader in managing digital and IT infrastructure with a broad portfolio of software solutions.  We are thrilled to partner with the talented BMC team to accelerate growth—including via M&A—building on BMC's deep technology expertise and long-standing customer relationships."

Wednesday, March 28, 2018

Motorola Solutions completes acquisition of Avigilon for a video surveillance

Motorola Solutions completed its previously announced acquisition of Avigilon, a supplier of advanced security surveillance solutions, for CAD$27.00 per share, valuing the transaction at approximately US$1.0 billion including Avigilon’s net debt.

Avigilon, which is based in Vancouver, British Columbia, holds more than 750 U.S. and Canadian patents related to video surveillance. The company's portfolio includes video analytics, network video management software and hardware, surveillance cameras, and access control solutions. Avigilon products are used by a range of commercial and government customers including critical infrastructure, airports, government facilities, public venues, healthcare centers and retail.

Avigilon will operate as a separate unit of Motorola Solutions, with James Henderson, president and chief operating officer for Avigilon, reporting to Jack Molloy, executive vice president, worldwide sales and services for Motorola Solutions.

Wednesday, January 3, 2018

CyrusOne to acquire Zenium Data Centers for $442M

CyrusOne agreed to acquire Zenium Data Centers, a leading hyperscale data center provider in Europe with four properties in London and Frankfurt, the continent’s two largest data center markets, for $442 million, reflecting a multiple of 18 times expected annualized Adjusted EBITDA of approximately $25 million from both commenced and signed but not yet billing leases. CyrusOne will also reimburse Zenium for capital expenditures between signing and closing. The two facilities in Frankfurt will be owned by CyrusOne, while the two facilities in London are leased with a remaining weighted average lease term of approximately 40 years, inclusive of renewal options.

Zenium has approximately $40 million in annualized contracted GAAP revenue, taking into account leases that are signed but not yet billing, excluding estimates for pass-through power, representing approximately $25 million in expected annualized Adjusted EBITDA. All signed contracts will have commenced by year-end 2018. Upon full buildout, the four properties will consist of more than 260,000 colocation square feet and 49.3 MW of power capacity. Approximately 54% of this power capacity, or 26.8 MW, is currently leased.

MW                                                  London     Frankfurt     Total

Total power capacity(1)                     22.6       26.7              49.3
Total power capacity leased                9.4        17.4               26.8
% leased                                             42%       65%              54%
Power capacity available for lease      13.2      9.3                22.5

(1)Represents critical load power capacity available for lease upon full buildout

“This transaction establishes a significant presence for us in Europe’s two largest data center markets and provides a platform to scale to meet the strong demand across the continent,” said Gary Wojtaszek, president and chief executive officer of CyrusOne. “The Zenium team is experienced and well-respected with particular expertise leasing to hyperscale companies, and they have built an outstanding, fast-growing company. The capacity for further growth at their existing locations remains substantial, allowing us to nearly double the size of their business, and we will be able to leverage the European infrastructure to expand within London and Frankfurt and into new markets in an efficient, cost-effective manner.”

Thursday, July 6, 2017

Cablevisión and Telecom Argentina plan merger

Cablevisión Holding,  a spin off company formed through the corporate restructuring of Buenos Aires-based Grupo Clarín, announced that its subsidiary Cablevisión, the leading pay TV and broadband provider in Argentina, and Telecom Argentina, a major mobile and fixed telecom company in Argentina, plan to merge their corporate and operational structures to establish a converged telecom operator.

The transaction is intended to create a major telco in Argentina as well as to better enable the companies to participate in the opening up of the telecom sector in the country, which under the regulatory framework is scheduled to begin as of January 2018.

The companies stated that on June 30th the boards of both companies approved a preliminary merger agreement (compromiso previo de fusión), with the proposed transaction designed to align with the wider industry convergence in the provision of fixed and mobile, video and Internet services to enable quad-play offerings. The combination is also expected to enhance the companies' ability to invest in the latest mobile technology and to deploy a high speed fibre network.

Under the terms of the agreement, Telecom Argentina will implement a merger by absorption of Cablevisión. As a result, Telecom Argentina will increase its share capital by $1,184,528,406, and therefore will issue on the effective date of the merger $1,184,528,406 shares of common stock, each to be registered with a nominal value of $1, hold one vote, and be issued either as a class A share or a new class of common stock (class D shares), which will be distributed Cablevisión shareholders in accordance with the agreed exchange ratio.

The exchange ratio approved by the companies' boards provides for 9,871.07005 shares of Telecom Argentina for each Cablevision share. Thus, CVH, the controlling shareholder of Cablevision, and Fintech Media, Cablevision's minority shareholder, will receive a total direct and indirect interest in Telecom Argentina equal to 55% after its capital increase. The current shareholders of Telecom Argentina will retain the remaining 45% of the share capital following the merger.

The transaction is subject to the respective shareholder meetings' approval and to regulatory approvals.

As well as being the main pay TV and a major broadband service provider in Argentina, Cablevision is also the second largest pay TV provider in Uruguay. Telecom Argentina is a leading mobile and fixed service provider in Argentina and also a major mobile carrier in Paraguay.


Wednesday, July 5, 2017

MRV to be acquired by ADVA for $69 million

MRV Communications based in Chatswoth, California, a provider of advanced network solutions for data centres, service providers and enterprises, announced an agreement under which ADVA Optical Networking will acquire MRV via a tender offer of $10.00 per share for all its outstanding common stock.

The tender offer represents an aggregate purchase price of approximately $69 million. The transaction has been approved and unanimously recommended by both the board of directors of ADVA and that of MRV Communications.

ADVA expects that the proposed acquisition will further strengthen its portfolio of optical, Ethernet and software solutions and expand its customer base, particularly in non–European regions. In 2016, MRV recorded revenue of $80.3 million; for the most recent quarter ended March 31, 2017, MRV recorded revenue of $21.2 million, up 12.1% year on year, and net loss of $1.0 million, versus a net loss of $3.9 million a year earlier. MRV had cash and cash equivalents of $21.7 million and no debt.

For its first quarter ended on March 31, 2017, ADVA reported revenue of Euro 141.83 million, up 16.3% versus the first quarter of 2016, with net income of Euro 6.18 million, compared with a net loss of Euro 5,16 million in the 2016 first quarter.

ADVA noted that the acquisition of MRV, if completed, will mark its second significant acquisition in two years. In 2016, it acquired Overture Networks to expand its Carrier Ethernet portfolio and create a NFV product suite, named Ensemble. Earlier this year, Ensemble was selected by Verizon for its virtual uCPE solution.

The acquisition of MRV remains subject to customary closing conditions, including the tender of at least a majority of MRV's outstanding shares of common stock, and is expected to be completed in August or September of this year.

Regarding the transaction, Uli Dopfer, CFO of ADVA said, "The acquisition of MRV will… not only strengthens ADVA's cloud access portfolio, but also open the door to new customers… this acquisition will present many new business opportunities, especially for communication service providers seeking to explore the possibilities of virtualised network services".



  • MRV Communications was founded in 1988 by Prof. Shlomo Margalit and Dr. Zeev Rav-Noy. The company is headquartered in Chatsworth, California and has R&D centers in Chelmsford, MA, and Yokneam, Israel.

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.


See also