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

Monday, July 16, 2018

Orange acquires Basefarm for cloud infrastructure in Europe

Orange Business Services has agreed to acquire Basefarm Holding AS, a major player in cloud infrastructure and critical application services in Europe, for EUR 350 million.

Basefarm, which recorded revenues of over EUR 100 million in 2017, has an operational presence in several European countries, particularly in Norway, Sweden, the Netherlands, Austria and in Germany.

Orange Business Services said the acquisition of Basefarm represents an advancement of its development strategy, complementing its existing catalogue of offers. The addition of Basefarm will also complete the geographical reach of Orange’s services, enabling it to become a leading player in Europe.

“We are very proud to announce the acquisition of Basefarm, which will mark a major milestone in our international development. In particular, the company’s integration will enable us to significantly extend our Big Data and critical application management services on a rapidly consolidating market. In addition to our ability to offer access to public or private cloud infrastructure, it is above all our capacity to propose enriched, automated services to our customers, wherever they are in the world, that will enable us to support companies as they transform onto new, digital models based on cloud-computing, Big Data and Artificial Intelligence,” said Helmut Reisinger, Chief Executive Officer of Orange Business Services.


  • The Basefarm group consists of four companies; Basefarm AS (Norway), Basefarm BV (Netherlands), Basefarm AB (Sweden) and The unbelievable Machine Company Gmbh (Germany and Austria). ABRY Partners holds a 90% stake in Basefarm. The company was founded in 2000, is based in Oslo, and is headed by Fredrik Olhsen.

Thursday, July 12, 2018

Intel to acquire eASIC for programmable logic

Intel agreed to acquire eASIC, a privately-held developer of field programmable gate arrays (FPGAs). Financial terms were not disclosed.

eASIC, which was founded in 1999 and is based in Santa Clara, California, helps customers to develop custom silicon with low up-front costs. The company says it can deliver tested prototypes in as little as 5 weeks from tape out.  The eASIC Platform replaces SRAM based routing with a scheme that utilizes a single via, significant die size reduction can be achieved compared to comparable density FPGAs.

eASIC's fifth generation Nextreme-3S, which is built on a 28nm CMOS process, can be used for logic, DSP or memory intensive designs and provides greater than 1 terabit of bandwidth using a combination of 28 Gbps and 16 Gbps high speed transceivers.

Following the acquisition, the eASIC team will join Intel’s Programmable Solutions Group.

https://www.easic.com/
https://newsroom.intel.com/editorials/mcnamara-psg-expands-portfolio/

Wednesday, July 11, 2018

Broadcom to acquire CA Technologies for $18.9 billion

Broadcom agreed to acquire CA Technologies (NASDAQ: CA) for $44.50 per share in cash, representing an enterprise value of $18.9 billion -- a premium of approximately 20% to the closing price of CA common stock on July 11, 2018.

CA, which was founded by Charles Wang and Russell Artzt in 1976 and formerly known as Computer Associates,  is one of the world's leading providers of information technology (IT) management software and solutions. The company is based in New York City and is primarily known for its B2B mainframe, distributed computing, and enterprise software.

Broadcom notes that CA benefits from predictable and recurring revenues with the average duration of bookings exceeding three years.

Hock Tan, President and Chief Executive Officer of Broadcom, said, "This transaction represents an important building block as we create one of the world's leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions."

"We are excited to have reached this definitive agreement with Broadcom," said Mike Gregoire, CA Technologies Chief Executive Officer. "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry. The benefits of this agreement extend to our shareholders who will receive a significant and immediate premium for their shares, as well as our employees who will join an organization that shares our values of innovation, collaboration and engineering excellence. We look forward to completing the transaction and ensuring a smooth transition."




Trump blocks Broadcom's proposed takeover of Qualcomm

President Trump signed an executive order prohibiting Broadcom from acquiring Qualcomm or proceeding with any substantially equivalent merger, acquisition, or takeover of the firm whether effected directly or indirectly.

The order cited "credible evidence" that Broadcom, along with its partners, subsidiaries, or affiliates, impairs the national security of the United States.

Trump said he was taking this action upon review of a recommendation from the Committee on Foreign Investment in the United States.

Broadcom issued a statement saying it was reviewing the order.

Qualcomm issued a statement saying all of Broadcom’s director nominees are also disqualified from standing for election as directors of Qualcomm. 'the company will reconvene its 2018 Annual Meeting of Stockholders on the earliest possible date. Stockholders of record on January 8, 2018 will be entitled to vote at the meetin

Tuesday, July 10, 2018

AT&T to acquire AlienVault for cyber threat intelligence

AT&T agreed to acquire AlienVault, a privately held company based in San Mateo, California that specializes in enterprise-grade security solutions for small and medium-sized businesses. Financial terms were not disclosed.

AT&T said it intends to integrate AlienVault’s threat intelligence with its cybersecurity solutions portfolio.

“Regardless of size or industry, businesses today need cyber threat detection and response technologies and services,” said Thaddeus Arroyo, CEO, AT&T Business. “The current threat landscape has shifted this from a luxury for some, to a requirement for all. AlienVault’s expertise in threat intelligence will improve our ability to help organizations detect and respond to cybersecurity attacks. Together, with our enterprise-grade detection, response and remediation capabilities, we’re providing scalable, intelligent, affordable security for business customers of all sizes.”

“We’re thrilled to join forces with AT&T. They bring a robust cybersecurity portfolio with an industry-leading technology ecosystem,” said Barmak Meftah, president and CEO, AlienVault. “This deal accelerates our ability to deliver on the AlienVault mission, which is to democratize threat detection and response to companies of all sizes.”



Monday, July 2, 2018

SUSE sold to EQT for $2.35 billion -- enterprise Linux

EQT, a major international investment firm, has acquired SUSE from Micro Focus for US$2.535 billion.

SUSE, which is based in Nuremberg, Germany, is a leading provider of enterprise-grade, open source Linux solutions. The company was founded in 1992. It was acquired by Novell in 2003. Subsequently, Novell was acquired by The Attachmate Group, which later merged with UK-based Micro Focus.  SUSE is an acronym standing for Software- und System-Entwicklung.

SUSE CEO Nils Brauckmann says the company will move to the next stage of its corporate evolution and operate globally as an independent company. SUSE expects staffing, customer relationships, partnerships, product and service offering, commitment to open source leadership and support for the key open source communities to remain unchanged.

“Today is an exciting day in SUSE’s history. By partnering with EQT, we will become a fully independent business,” said Nils Brauckmann, SUSE CEO. “The next chapter in SUSE’s development will continue, and even accelerate the momentum generated over recent years. Together with EQT we will benefit both from further investment opportunities and having the continuity of a leadership team focused on securing long-term profitable growth combined with a sharp focus on customer and partner success. The current leadership team has managed SUSE through a period of significant growth, and now, with continued investment in technology innovation and go to market capability, will further develop SUSE’s momentum going forward.”

Monday, June 25, 2018

AT&T sells data centers to Brookfield for $1.1 billion

AT&T will sell its data center colocation operations and assets to Brookfield Infrastructure and its institutional partners for $1.1 billion. This includes 18 Internet Data Centers (IDCs) in the United States and 13 outside the United States.

Brookfield is establishing a wholly-owned company to own and operate the assets. Customer contracts, employees supporting the colocation operations, fixed assets, leased and owned facilities will transfer to Brookfield. The colocation data center operations serve a diversified customer base of more than 1,000 companies.

AT&T said it will continue to deliver network services to its customers at the IDCs. Funds from the sale will be used to pay down debt. AT&T will become an active sales channel for the Brookfield business and will be the anchor tenant of the colocation operations.

Brookfied intends to appoint Tim Caulfield as CEO of the business. Caulfield is currently CEO of ANTARA Group, an IT management consultancy focused on the Internet-as-a-Service segment with extensive experience in data center services.

AT&T noted that will continue to offer customers access to colocation services at more than 350 data centers — including transferred IDCs — around the world as part of AT&T’s colocation ecosystem program.

AT&T's ongoing services to businesses include:

  • Data Center Connectivity – Ethernet, Internet and VPN.
  • AT&T NetBond for Cloud – a scalable, predictable and highly secure connection to the cloud.
  • AT&T FlexWare – Simplifies delivering and deploying software-based functions like routers and firewalls using SDN and NFV. It streamlines network infrastructure and has the potential to lower businesses’ capital investments.
  • Cloud and Data Center Consulting – consultation and design around data center, cloud and network migrations.
http://about.att.com/story/att_brookfield_infrastructure.html


  • Brookfield's investments include one of the largest portfolios of office properties in the world, an infrastructure business spanning utilities, transport, energy, communications infrastructure and sustainable resources, and one of the largest pure-play renewable power businesses with more than 200 hydroelectric facilities. 

  • In 2017, Verizon sold its 29 data centers and their operations to Equinix in a deal valued at $3.6 billion in cash. This includes 29 data centers are located across 15 cities in North and Latin America and over 1,000 customers.

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.”

Ribbon to acquire Edgewater Networks

Ribbon Communications agreed to acquire Edgewater Networks, a privately-held company based in San Jose, California that specializs in Network Edge Orchestration for the small and medium enterprise (SME) and Unified Communications (UC) market. 

Under the deal, Ribbon will pay Edgewater Networks shareholders an aggregate of $110 million, subject to customary post-closing net working capital and debt adjustments, comprised of: $50 million of cash, $30 million of deferred cash payments, and $30 million of Ribbon common stock to be issued at the time of closing, not to exceed 5.2 million shares.

Edgewater Networks, which was founded in 2002 and currently has about 80 employees, says it has more than 635,000 actively deployed edge devices and more than 20 million connected endpoints.

It product portfolio includes a hybrid network edge orchestration solution; a family of EdgeMarc IP-to-IP Session Border Controllers, EdgeMarc Multi-Service Gateways, and EdgeProtect Unified Communication platforms; an EdgeView Service Control Center (SCC) that provides visibility to all voice and data traffic and real-time alerts/alarms for remote troubleshooting and management; and an Edgewater SD-WAN solution.

Edgewater's revenue was $64 million in 2017 and $50 million in 2016, primarily derived from sales within the U.S.  Over the past four years, Edgewater Networks has recorded annual double-digit sequential revenue growth. Adjusted EBITDA was $4 million in 2017, a 98% increase compared to $2 million in 2016.

Ribbon said the acquisition will make it the market share leader for enterprise Session Border Controllers (SBCs) and Network Edge Orchestration.  The combined portfolio is expected to further strengthen the new Ribbon Protect UC security offering with voice and data intelligence from the enterprise edge and customer premises.

“This transaction demonstrates how we are delivering on our strategic objectives and extending our market reach,” said Fritz Hobbs, President and Chief Executive Officer of Ribbon Communications.  “The combination of Ribbon Communications and Edgewater Networks creates a best-in-breed, complete platform that extends our leadership position in the SBC, cloud UC, security and analytics markets.”

“The customer footprint of our combined organization is unmatched in the marketplace,” said David Norman, Chief Executive Officer of Edgewater Networks.  “The combination of Ribbon and Edgewater Networks will allow us to better serve customers globally and accelerate our pace of innovation in the UC and SD-WAN markets.”

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.

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