Networking M&A: Old Wine, New Bottles?

Pulling off computer networking M&As has always been hard.

Antitrust regulators. National security reviews.

Legacy protocols. Technologies with limited shelf life. Battles over industry standards. Remember 56K dial-up modems? And Fast Ethernet?

Product portfolio overlap. Roadmap conflicts. Synergies not working out.

And, of course, good old culture clashes. Protecting turf. Remember Alcatel-Lucent? Fondly nicknamed "Lucatel"?

Yet, these companies continue playing musical chairs. With the same old lyrics. Taking turns. To grab their seat in each round.

Always making the right noises. When announcing yet another merger. Using the same English. In their press releases. As quoted below.

It began a lifetime ago.

3Com x US Robotics

Jun 1997. USD 6.6 billion. Silicon Valley's largest acquisition until then. 

"Networking powerhouse ... development of enterprise and carrier networks ... deliver rich end-to-end solutions ... dramatically alter networking landscape."

Back then, nobody could sack you for buying a 3Com network card.

Nortel x Bay Networks

Sep 1998. USD 9.1 billion. New high. 

"First of its kind ... carrier-class, mission-critical networks ... next wave of innovation ... revolutionise work, learning and play."

In those days, though, it was Cisco and Lucent. Versus everyone else.

Cisco x Linksys

Mar 2003. USD 500 million.

"New broadband applications for home users ... end-to-end portfolio of solutions ... wireless, voice-over-IP and storage area networking."

Now we're getting the hang of it. :)

Alcatel x Lucent

Dec 2006. Whopping USD 13.4 billion!

"Define next-generation networks, services and applications ... become global leader in convergence ... significant transformation."

Termed a "merger of equals".

Avaya x Nortel

Dec 2009. USD 915 million.

"Redefine business communications ... simplify operations ... increase agility ... boost strategic position ... add scale ... expanded partner ecosystem ... major step in evolution."

HP x 3Com

Apr 2010. USD 2.7 billion.

"Data centre strategy ... accelerate converged infrastructure ... servers, storage, networking, management, facilities and services ... deploy edge-to-core network fabric for enterprise ... improve IT service delivery capabilities."

Beginning to sound familiar?

Cisco x Meraki

Dec 2012. USD 1.2 billion. 

"Accelerating adoption of cloud within networking ... enable new applications ... scalable solutions ... simplify IT operations ... unifying wired and wireless networks ... into one integrated infrastructure."

Now our vocabulary's expanding. :)

Belkin x Linksys

Mar 2013. Financial terms not disclosed.

"Enable new connected experiences ... distinct networking solutions ... richer user experiences ... network management functionality ... premier ecosystem for mobile devices and smart homes."

Impressive, right?

HP x Aruba

May 2015. USD 3.0 billion.

"Create industry leader in enterprise mobility ... and networking ... deliver next-generation converged campus solutions ... comprehensive, integrated and secure ..."

Brocade x Ruckus

May 2016. USD 1.5 billion.

"Build networking company for digital transformation era ... 5G mobile services, Internet of Things, smart cities and LTE/WiFi convergence ... disrupt the way edge services are created and delivered."

Nokia x Alcatel-Lucent

Nov 2016. USD 16.6 billion. 

"Innovation leader ... for IP connected world ... next wave of technological change ... Internet of Things and transition to cloud."

Extreme Networks x Avaya Networking Unit

Jul 2017. USD 100 million.

"Broaden enterprise capabilities ... strengthen campus core and data centre networking solutions."

Hadn't we heard that three paragraphs ago?

Broadcom x Brocade

Nov 2017. USD 5.9 billion.

"Leading provider of enterprise storage connectivity to OEMs ... best-in-class fibre-channel SAN solutions ... deep expertise in mission-critical storage networking."

ARRIS x Ruckus

Dec 2017. USD 800 million.

"Growing wireless broadband markets for enterprise and service providers ... leadership in converged wired and wireless networking technologies ... home, education, public venue, enterprise, hospitality ..."

CommScope x ARRIS

Apr 2019. USD 7.4 billion.

"Shape future of wired and wireless communications ... network convergence, fibre and mobility everywhere, 5G and Internet of Things."

Cambium Networks x Xirrus

Aug 2019. Financial terms not available.

"Delivery of differentiated solutions ... to service providers ... wireless fabric portfolio of connectivity ... to distributed enterprise, education, government, hospitality and public venue customers."

HP (now HPE) x Juniper

Announced Jan 2024. USD 14 billion. This one smashes all records. In sheer transaction size.

"Creating new networking leader ... AI environment on foundational cloud architecture ... secure, unified technology solutions ... connect ... data from edge to cloud."

And so life goes on.

The hunter becomes the hunted. Avaya filed for Chapter 11 bankruptcy. In 2017 and 2023. Came out of it both times.

New names emerge. And hide under "Others" in industry reports.

Yet, the needle barely moves. As per IDC, in six years from 2017 Q2 to 2023 Q2:

• Industry leader Cisco's global enterprise WLAN market share went from 43.3% to 43.5%.

• Distant second HPE Aruba's from 17.2% to 16.2%.

• Huawei, Ubiquiti and CommScope stayed in single digits.

Perhaps some day, when regulators are on leave, all these companies will quietly merge into one.

No need to draft a press release. They can just copy and paste from above. :)

And nobody'll even notice!

Until next time. :)