Cisco Cuts Some Fiber From Its Diet
In what's viewed as Cisco's first-ever divestiture, Cisco has sold Fibercore, a U.K.-based maker of specialty optical fibers, to H.I.G. Capital Europe. Financial terms were not disclosed, but it's believed that the value of the deal was less than $100 million. (See Cisco Sets Fibercore Free .)
Cisco obtained Fibercore through its $6.9 billion acquisition of Scientific Atlanta Inc. in 2005, and has been operating it as a wholly-owned subsidiary ever since. S-A, a key cable industry supplier during its day, ran Fibercore as a U.K.-based subsidiary following a $25 million purchase of ATx Telecom Systems Inc., a firm that specialized in 1550 nanometer fiber optic technologies, including Erbium Doped Fiber Amplifiers (EDFAs), in 1996.
Fast-forwarding to today, Fibercore's products have extended well beyond telecom and video and data transport to very non-Cisco-y markets like long-haul airliners, business jets and space exploration vehicles.
Why this matters
Divesting a company for less than $100 million may not put much of a dent in a company the size of Cisco, but the sale may signal that Cisco is in the mood for a bit of corporate refocusing. Following a massive string of acquisitions in recent years, Cisco may be looking to sell off other non-core assets to help trim up its waistline a bit more. (See Cisco Offers Softer Switch, Router Sales.)
For more
Fibercore's got a long history (it's 28 years old, in fact), and Light Reading picked up on some tidbits in recent years:
— Jeff Baumgartner, Site Editor, Light Reading Cable
Is this really their first-ever divestiture of a company?
Could be. I can't think of another offhand.
(Note that I'm talking about selloffs. Cisco has *killed* off a number of technologies and startups internally, I'm sure. But have they ever wrapped something up with a bow and sold it?)