Infinera buying Coriant will bring welcome consolidation

Infinera is to purchase privately-held Coriant for $430 million. The deal will effectively double Infinera’s revenues, add 100 new customers and expand the systems vendor’s product portfolio.

Infinera's CEO, Tom FallonBut industry analysts, while welcoming the consolidation among optical systems suppliers, highlight the challenges Infinera faces making the Coriant acquisition a success.   

“The low price reflects that this isn't the best asset on the market,” says Sterling Perrin, principal analyst, optical networking and transport at Heavy Reading. “They are buying $1 of revenue for 50 cents; the price reflects the challenges.”   

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