Infinera closes acquisition of Coriant and becomes one of the world’s largest optical network equipment providers
Oct 2, 2018
SUNNYVALE, Calif. , Oct. 01, 2018 (GLOBE NEWSWIRE) -- Infinera, provider of Intelligent Transport Networks, announces the closing of its acquisition of Coriant, a privately held global supplier of open network solutions for the largest global network operators. The acquisition positions Infinera as one of the largest vertically integrated optical network equipment providers in the world.
The closing was pursuant to the terms of the definitive unit purchase agreement previously announced by Infinera on July 23, 2018. In connection with the purchase of Coriant, 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.
The acquisition is expected to significantly increase revenue while expanding Infinera’s customer base to serve nine of the top 10 global network operators and the top six global internet content providers. The combination positions Infinera to deliver a powerful suite of innovative, 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.”
Initial feedback from existing Infinera and Coriant customers has been positive. Highlights include:
“Coriant already delivers strong technical value across our network, and we expect a stronger Infinera that will enhance and satisfy the transport needs of the customers,” said Cayetano Carbajo Martín, Telefónica Chief Technology Officer. “With the combined products and solutions from both companies, we look forward to more innovation from Infinera both for packet data and transmission.”
“GTT’s clients expect industry-leading, differentiated network infrastructure solutions to ensure their networks are reliable and secure,” said Paul Monteiro, SVP, Operations and Engineering at GTT. “We welcome Infinera’s acquisition of Coriant which enables Infinera to provide a broader range of high-performance network infrastructure capabilities.”
“The consolidation of both companies marks a significant milestone for the industry. As two industry pioneers, we believe strongly in their potential to deliver game-changing, innovative technology that will power the future of networks,” said Buddy Bayer, Chief Network Officer at Windstream.
“We are excited to see Infinera’s acquisition of Coriant and anticipate that not only will we benefit from their combined innovation, but also their enhanced customer service as we invest in expanding our network footprint over the next five years,” said Conrad Mallon, Chief Technical Architect at SSE Enterprise Telecoms. “It will be interesting to see how the orchestration and software strategy of the combined organizations develops and how they contribute to the world of SDN and NFV.”
Infinera’s acquisition of Coriant adds approximately 2,100 employees, over 1,600 patents and more than 600 customers globally to Infinera. Integration planning for the combined company is on schedule.
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