The Top 10 Networking Company Acquisitions Of 2019 (So Far)

From the industry's largest players such as IBM and Cisco announcing ambitious acquisition plans, to significant software deals between startups and incumbents, here are ten of the top networking company acquisitions of 2019 so far.

Wheeling and Dealing

The networking market isn't a space that sits still for too long, and 2019 is proving to be consolidation-friendly year.

The industry saw IBM complete its impressive $34 billion acquisition of software leader Red Hat, and Salesforce revealed plans to scoop up business intelligence software firm Tableau for $15.7 billion. The market's industry leaders didn't want to be left out either – Cisco made several moves this year so far, announcing plans to acquire Acacia Communications and closing its Luxtera deal, and Juniper Networks also got in on the action when it grabbed up Mist Systems for $405 million.

From the biggest billion-dollar deals to those that cost a pretty penny in the hundreds of millions, here are ten of the top networking company acquisitions of 2019 so far.

10. Extreme Networks To Acquire Aerohive For $210 Million

Extreme Networks revealed plans to scoop up its competitor in the wireless space, Aerohive Networks, for $210 million in June.

The deal, according to Extreme, will strengthen its leadership position in cloud management, wireless networking and SD-WAN. The tie-up will also boost the company's subscription and services business, San Jose, Calif.-based Extreme said.

Via the terms of the deal, Extreme will take on all outstanding shares of common stock of Aerohive for $4.45 per share in cash, which represents an aggregate purchase price of approximately $272 million. Accounting for Aerohive’s net cash balance of $62 million at the end of March, the deal is equivalent to an enterprise value of $210 million. The deal is expected to close during Extreme's Q1 in 2020.

9. Juniper Networks To Buy Mist Systems For $405 Million

In March, Juniper Networks said it reached an agreement to buy AI-powered networking startup Mist Systems, a company founded by former Cisco Systems executives, for $405 million.

Mist's technology applies artificial intelligence to data collected from mobile devices to monitor and manage local area networks. The company had raised about $88 million since it was founded in 2014 prior to the deal with Juniper. For its. Part, Juniper has been integrating Mist’s cloud-management and advanced AI engine into its enterprise portfolio since the transaction closed in April.

8. Cisco Closes $660 Million Luxtera Acquisition

Cisco in December said it would buy optical chip maker Luxtera, Inc. for $660 million in cash. In February, the tech giant closed the transaction.

Carlsbad, Calif.-based Luxtera uses silicon photonics technology to build integrated optics capabilities for enterprise data centers, service providers, and hyperscale providers. Cisco said that Luxtera’s technology is important, especially as cloud, mobility, and IoT applications put strain on existing communications infrastructure. Cisco’s and Luxtera’s capabilities in 100GbE/400GbE optics, silicon, and process technology will help customers to build future-proof networks optimized for performance, reliability, and cost, according to Cisco.

7. F5 Networks Pays $670 Million For NGINX

Application delivery and networking specialist F5 Networks in March announced plans to buy out one of its largest competitors, NGINX, for $670 million, and in May, the company closed the deal.

F5 Networks has been on a path toward services and moving away from its roots as a hardware-focused firm. The acquisition, according to F5, will help the company accelerate these plans because startup NGINX specializes in open source, software-based application delivery.

According to F5, the two product lines will be integrated. F5 is adding security adding protection to NGINX products and NGINX load balancing software will support supporting F5's cloud-native solutions. NGINX has said it will continue to support the open source community.

6. Cogeco Peer 1 Bought By Digital Colony For $720 Million

Global investment firm Digital Colony first announced it would acquire Cogeco Peer 1, a co-location, network connectivity and managed services provider, in February. In May, the deal closed.

Cogeco Peer 1 is the cloud subsidiary of Cogeco Communications. The company agreed to sell its cloud business for $720 million to Digital Colony to help transform Cogeco Peer 1 into a stand-alone hybrid networking and cloud service business, the provider said.

Via the terms of the deal, Cogeco Peer 1's new Fiber business unit will be scaled. The company also has a data center division. Cogeco Peer 1 will remain headquartered in Toronto.

5. HPE Acquiring Cray For $1.3 Billion

Hewlett Packard Enterprise (HPE) unveiled in May plans to acquire global supercomputer innovator Cray for $1.3 billion. The company said it wants to combine technologies to create in the future a HPC-as-a-Service offering, and it wants to inject more AI and machine-learning analytics through HPE’s GreenLake consumption-based offering.

The two companies said they plan on building a portfolio of HPC infrastructure of compute, high-performance storage, system interconnects, software and services to address the full spectrum of customers’ data-intensive needs.

The acquisition is expected to close by the first quarter of HPE’s fiscal year 2020.

4. NXP Semiconductors To Buy Marvell's Wi-Fi Business For $1.76 Billion

NXP Semiconductors announced its intent to buy semiconductor manufacturer Marvell Technology Group's Wi-Fi connectivity assets in an all-cash deal valued at $1.76 billion in May.

Via the terms of the deal, Netherlands-based NXP will acquire Marvell’s Wi-Fi and Bluetooth technology portfolios and related assets. The divestiture will help grow NXP into a larger infrastructure supplier that can offer 5G, data center, enterprise and automotive Ethernet applications, the companies said. The deal is also aimed at growing NXP into a larger supplier of more IoT connectivity options.

The transaction is expected to close by Q1 2020, the companies said.

3. Cisco To Acquire Acacia Communications For $2.6 Billion

Cisco Systems in July revealed plans to scoop up Acacia Communications, a manufacturer of optical interconnect products, for $70 per share in cash in a $2.6 billion deal.

Cisco has been actively strengthening its networking portfolio both organically and inorganically. This particular deal will strengthen Cisco's innovation capabilities across software, silicon and optics, which will help the San Jose, Calif.-based giant continue to make networks smarter, simpler and more secure, Cisco said regarding the acquisition.

The two companies expect the deal to close during the second half of Cisco’s fiscal 2020. Acacia employees will become part of Cisco’s Optical Systems and Optics business, the companies said.

2. Salesforce To Acquire Tableau For $15.7 Billion

SaaS giant said it would scoop up business intelligence and data visualization software specialist Tableau for an impressive, all-stock deal valued at $15.7 billion in June.

The two companies said the combination will bring together the "world's number one CRM with the number one analytics platform."

Salesforce and Tableau expect to close the deal during Salesforce's fiscal third quarter, which ends in October, pending the tender of Tableau shares by the company's stockholders. Tableau said it will operate independently under the Tableau brand after the acquisition closes.

1. IBM Acquires Red Hat For $34 Billion

IBM in July completed its $34 billion acquisition of open-source software vendor Red Hat. Big Blue had lofty goals for the deal -- the company said that combined with Red Hat, it will be a leader in the hybrid cloud computing marketing.

Specifically, IBM said it will use Red Hat's software, including its Linux and Kubernetes software, combined with its own cloud technologies to offer a next-generation hybrid, multi-cloud platform that businesses and organizations use to securely deploy, run and manage data and applications in on-premise systems and on private and multiple public clouds. IBM has also said Red Hat will operate as an independent business unit.

The acquisition was first announced in October 2018.