NEWS HIGHLIGHTS KEY


DEVELOPMENTS OF 2019


The most industry-shaping news stories of the last 12 months


MERGERS AND ACQUISITIONS CONTINUE AT PACE


It would be remiss to publish some of the biggest stories this year without starting with the raſt of mergers and acquisitions across the supply chain. Tis is not a new occurrence


– the optical communications sector has experienced a couple of particularly active years in mergers and acquisitions. Take US optoelectronic component manufacturer II-VI, which announced its intent to acquire component and subsystem manufacturer, Finisar for $3.2bn at the end of 2018. By combining the two firms, II-VI’s aim is to beter address the emerging markets of 5G, 3D sensing, cloud computing, electric and autonomous vehicles, and advanced microelectronics manufacturing. Te transaction closed in September and was announced at the ECOC Conference and Exhibition. Vincent D Matera, chief


executive officer, II-VI, said: ‘Te powerful combination of II-VI and Finisar makes us the global leader in optical communications and continues our leadership in other key end markets, with a world- class product portolio and deep technology expertise that enables us to offer more tightly integrated solutions and exceptional overall value for our customers.’ Another big acquisition was by


Cisco of Acacia Communications. Under the agreement, Cisco will buy Acacia for $70 per share in cash, or approximately $2.6bn


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on a fully diluted basis, net of cash and marketable securities. Innovation across soſtware,


silicon and optics is the driver for Cisco’s initiative to make networks smarter, simpler and more secure. Acacia’s technology will help allow the growing number of customers transitioning from chassis-based systems to pluggable technology to simplify operations. Acacia employees will join Cisco’s Optical Systems and Optics business under David Goeckeler, executive vice president and general manager of Cisco’s networking and security business. Goeckeler said of the


announcement: ‘With the explosion of bandwidth in the multi-cloud era, optical interconnect technologies are becoming increasingly strategic. Te acquisition of Acacia will allow us to build on the strength of our switching, routing and optical networking portolio to address our customers’ most demanding requirements.’ Te deal is expected to close


during the second half of Cisco’s financial year 2020. Te company also completed the $660m purchase of semiconductor firm Luxtera earlier this year. At the data centre end of the


market, Intel agreed to acquire Ethernet switch silicon and soſtware specialist Barefoot Networks, in a move designed to support Intel’s focus on end-to-end cloud networking and infrastructure. Navin Shenoy, executive vice-


president and general manager of the Data Center Group at Intel, said: ‘Intel’s customers operate in a world that is growing and transforming by leaps and bounds. Over half of


the world’s data was generated in the past two years and only two per cent of that data has been analysed. Driven by that reality, we’re always asking ourselves how we can beter enable our customers to harness the potential of this data, by moving, storing and processing it with the speed and efficiency that they demand. An essential part of the equation is providing data centre interconnects that can keep pace with our customers’ extraordinary and growing requirements. Tis is why interconnect is one of our six technology pillars in which we are investing to serve our customers.’ Tere is also consolidation


activity in the infrastructure and access equipment arena, with HellermannTyton recently announcing its intent to acquire German manufacturer of micro duct systems, gabo Systemtechnik (gabocom). Te purchase is designed to add considerable strength to HellermannTyton’s Connectivity product range and, in turn, help to enable international growth and the development of new market opportunities. Mathew Hunter, connectivity


managing director at HellermannTyton, said: ‘By bringing the product solutions of both HellermannTyton and gabacom together, not only can we offer comprehensive, market leading connectivity solutions to the fibre optical sector, but HellermannTyton can increase its international footprint with accelerated growth in both new and existing markets.’ Even the industry’s associations


are geting in on the act, with the GiGAWire Alliance and the Home


Grid Forum merging to create an organisation that will be structured to work across a widening portolio covering IoT, connected cars, smart grid, light communications (lifi) and GiGAWire MDU. Te announcement was made


at the Broadband World Forum event, where marketing chair Livia Rosu said: ‘Adding GiGAWire’s experience and access deployment knowledge to the work of the HomeGrid Forum will give the combined organisation massive potential.’ Tere are advantages and


disadvantages to any industry experiencing consolidation. As one organisation incorporates another, it becomes larger and potentially more efficient, with more profit opportunity enabling more research and development. For companies being incorporated, it could mean new management and staff retention, over redundancies. But it can be a danger that increased market share of only one or two firms leads to a monopoly. Will mergers and acquisitions


start to slow down in 2020? Woo Jin Ho, senior analyst at


Bloomberg Intelligence spoke on the topic at the OFC Conference. He believes there are two key areas still driving industry consolidation. ‘Number one,’ he said, ‘is China, which has been investing heavily in the optical infrastructure. Number two is the internet cloud provider, which has been investing heavily in data centre interconnect (DCI). ‘Te challenges may grow and


Made in China 2025 will create more consolidation. China wants to supply 30 per cent of domestic demand for optical components by 2022.’


Fibre Yearbook 2020


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