There has been a recent surge in Merger and Acquisition (M&A) activity in the Telecommunications industry. You have likely seen many of the announcements yourself. You might also be asking what this activity means for you and your business. The good news is that strategic planning around this M&A activity is one of the many services GCN provides.
Maybe you recently moved from one carrier to another for performance or price issues, only to see the provider you thought you were moving away from creep its way back into your provider mix. Perhaps you have two separate carriers for diversity reasons, and now those companies will be merging. You might also have questions about what a combined company is going to look like and how support/billing/leadership will affect you and your company.
For the most recently announced deals, it is still too early to be playing the “what if” game. But as Robert Kiyosaki, public speaker and founder of Rich Dad Company, once said, “The best way to predict the future is to study the past, or prognosticate.” In other words, by looking back at the industry history and the history of each individual carrier, we can make some good predictions as to what this will all look like in the future. Better yet, we can start to plan around that.
Here is a quick list of the most recent deals since September. If I missed anything or if there is a deal you would like to highlight, please comment below.
September 2016 acquisitions
Verizon acquires Sensity, an IoT solutions provider.
Wave acquires CoastCom and SawNet, two Pacific Northwest-based fiber-optic broadband companies.
October 2016 acquisitions
Akamai acquires Soha Systems, which specializes in enterprise secure access.
The Center for Communication Management Information (CCMI) acquires I2Gemini, a specialized telecommunications applications provider.
November 2016 acquisitions
Private equity firm GTCR acquires Inteliquent.
GTT acquires Hibernia Networks for $590 million.
Zayo enters agreement to acquire Electric Lightwave.
December 2016 acquisitions
Everstream to acquire Lynx Network Group
Consolidated Communications Holdings Inc. to acquire FairPoint in $1.5 billion deal.
(Update 12/6/16) Verizon to sell 29 data centers in the U.S. and Latin America to Equinix.
One especially notable acquisition is not on the above list because it was announced earlier this year in February: namely, Verizon’s planned takeover of XO Communications, which just received FCC approval.
There are a lot of moving parts in the industry right now. We haven’t even addressed any providers’ organic expansions or changing technology trends that will further affect your company’s telecom and IT strategy for the next few years. Reach out to GCN today: We can have the kind of complex, holistic, and provider-neutral discussion that you won’t be able to get from any single provider.