Infinera completed its previously-announced acquisition of Coriant. Under the deal, which was announced on July 23, 2018, Infinera issued 20,975,384 shares of its common stock and will pay an aggregate amount of cash consideration consisting of approximately $230 million, of which approximately $154 million was paid upon closing.
Infinera said the acquisition significantly increases its revenue and customer base. The newly combined company serves nine of the top 10 global network operators and the top six global internet content providers as customers. The combined portfolio includes end-to-end packet optical network solutions for communications service providers and internet content providers.
“This is an exciting day for Infinera. The acquisition of Coriant is a major milestone, expanding the scope of our vertical integration strategy across a powerful suite of packet optical solutions for our customers,” said Tom Fallon, Infinera CEO. “The acquisition immediately strengthens our ability to serve a global customer base and accelerates delivery of the innovative solutions our customers demand.”
Infinera to acquire Coriant for $430 million
Infinera said the acquisition significantly scales the company as the next wave of global network spending begins as operators transform their networks from 4G to 5G, from Optical Transport Network (OTN) to packet and from closed to open network architectures. The company also says its vertically integrated business model delivers higher performance at lower cost for customers and higher profit margins for stockholders. The acquisition approximately doubles Infinera’s revenue and expands the company’s customer base to serve nine of the top 10 global network operators (five new to Infinera) and the top six global internet content providers (three new to Infinera).
“Acquiring Coriant is a fantastic opportunity, strengthening our ability to serve the world’s largest network operators, accelerating our ability to leverage vertical integration and reinforcing our commitment to our long-term business model,” said Tom Fallon, Infinera CEO. “This powerful combination immediately benefits our combined customers by delivering the innovative technology required for the next wave of network spending.”
“Joining forces with Infinera accelerates our vision of transforming next-generation networks with best-in-class innovation,” said Pat DiPietro, CEO and Vice Chairman of Coriant. “The combined company will benefit from Coriant’s significant investments in software automation and open, disaggregated solutions, which have gained significant traction and wide-scale adoption by customers around the world.”
The companies also noted:
- Coriant invested nearly $1 billion in research and development over the last five years to significantly advance its portfolio to address the growing demand for software automation and open, disaggregated platforms.
- Approximately 70% of Coriant's product revenue in 2017 (~80% projected in 2018) came from solutions that are new or have been refreshed in the last three years.
- Coriant has over 80 trials in progress or have been completed to date in 2018 for Coriant’s suite of new products and automation tools.
- Coriant’s SDN orchestrator Maestro has been deployed operationally at one of the two largest Tier 1 service providers in North America.
- Coriant has added more than 20 new customers to date in 2018, seven of which are driving more than $1 million in annual revenue.
- Infinera recently upgraded its portfolio based on its Infinite Capacity Engine (ICE4).
- The acquisition is expected to close in the third quarter of 2018, subject to customary closing conditions.
Coriant was formed in 2013 by private equity firm Marlin Equity Partners, combining Nokia Siemens Networks, Tellabs and Sycamore Networks.
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