By Mark Showalter
Sr. Director, Corporate Communications
Earlier today, Infinera announced its intent to acquire Coriant, a global supplier of open, hyperscale networking solutions for service providers and web-scale internet operators. We are excited at the opportunity to combine forces with Coriant and are delighted to imagine the possibilities. Infinera’s acquisition of Coriant positions the company as one of the largest optical network equipment providers in the world as optical networks expand to accelerate the bandwidth we use at home, at work and on the road.
Ovum predicts optical network spending will reach $17.8 billion in 2022. Infinera’s strategic combination with Coriant positions the company to capitalize on the next wave of global network spending driven by global operators as they transform and automate their networks to transition from 4G to 5G, from Optical Transport Network (OTN) to packet and from closed to open network architectures.
The acquisition aligns with Infinera’s strategy to deliver innovative, high-performance, easy-to-use optical network solutions at lower costs through a vertically integrated business model. Between Coriant’s investment of nearly $1 billion in research and development over the last five years to deliver new open, disaggregated, software-driven platforms and Infinera’s upgrades to the innovative Infinite Capacity Engine (ICE4)-based portfolio, the combined strengths of both companies will enable us to better serve our combined customers.
For me, today’s announcement marks an exciting milestone in Infinera’s journey. The combination 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).
We expect the transaction to close in the third quarter of 2018 and we will share information with you at that time. Until then it is business as usual at both companies – your current contacts and support team at Infinera remain unchanged. Contact us if you have any questions.