The pace of industry consolidation shows no sign of slowing down, with Corning and GigPeak the latest to book a seat on the M&A bandwagon.
Optical fiber and connectivity systems giant Corning Inc. (NYSE: GLW) is to buy Alliance Fiber Optic Products Inc. (Nasdaq: AFOP) (AFOP) for $305 million to support its plan for "growth in cloud data center market." AFOP makes passive optical components, including CWDM and DWDM modules and optical attenuators, used by data center operators and communications equipment manufacturers. (See Corning to Buy AFOP for $305M.)
The news, announced late Thursday, came as AFOP announced worse than expected first quarter preliminary revenues of just $12.4 million, some way off the $17.4 million that analysts, on average, had been expecting.
Corning, meanwhile, previously reported 2015 revenues of $9.8 billion, slightly down compared with 2014. The company is in the early stages of a new strategy initiative that will see it "invest approximately $10 billion in opportunities to grow and sustain its leadership positions, and return more than $10 billion to shareholders" by 2019.
Meanwhile, GigPeak Inc. (NYSE: GIG) has closed the $54 million acquisition of Magnum Semiconductor, which makes chips and software for the video broadcast and (no kidding) the "IoT camera" market.
The question some may be asking is -- who is GigPeak? Well, that's the new name for GigOptix, which decided it needed a new moniker to go with its broader market focus. Or, as the company puts it: "The renaming represents the broadening scope and capabilities of GigPeak, which brings together GigOptix's leading high-speed enterprise networking connectivity portfolio with Magnum's world-class expertise in video broadcasting, compression, and analytics to create a lead innovator of semiconductor ICs and software solutions for high-speed connectivity and high-quality video compression over the Network and the Cloud."
The move follows last year's review of the GigOptix's structure and focus. (See GigOptix Revamps Structure, Appoints Telecom & Wireless Execs.)
— Ray Le Maistre, , Editor-in-Chief, Light Reading