On 23 July 2018, Infinera announced its intent to acquire networking solutions vendor Coriant for $430M in cash and stock. In an increasingly competitive market with escalating R&D costs, scale is a viable strategic path forward for sustaining the investment levels required to deliver differentiated and compelling products and solutions. With the acquisition, Infinera gains significant scale, almost doubling in size in revenue, R&D, investment, and employees. Coriant also brings a needed element of “secret sauce” to Infinera—its expertise in IP routing and multi-layer SDN control and orchestration—which will be important moving forward for addressing applications including metro transport for cable/MSO fiber deep and distributed access architectures (DAA), 5G mobile transport, and data center interconnect (DCI). The combined companies also stand to benefit from stronger purchasing power, economies of scale, and consolidation of common functions. Infinera expects the transaction to close in Q3 2018. Clients, please log in to view the full content.