Cisco Cuts Some Fiber From Its Diet

Signaling that it may start to shed other non-core assets, Cisco sells Fibercore, a company it obtained through its buy of Scientific Atlanta

Jeff Baumgartner, Senior Editor

February 17, 2011

2 Min Read
Cisco Cuts Some Fiber From Its Diet

Fibercore Ltd. apparently didn't size up as much of a core business at Cisco Systems Inc. (Nasdaq: CSCO) anymore.

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:

  • OFS, Fibercore Settle

  • Fibercore Tests Fiber

  • Fibercore Intros New Fibers

— Jeff Baumgartner, Site Editor, Light Reading Cable

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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