Kontron Communications Business Acquires Inocybe

MONTREAL–(BUSINESS WIRE)–Kontron, a global provider of cloud and carrier-class integrated infrastructure platforms, announced today it has acquired Inocybe Technologies, a leading open networking technology provider. The purchase comes into effect immediately.

An expert in open source networking software and software-defined networks (SDN) from the datacenter to the edge, Inocybe adds open networking and OpenDaylight SDN controller expertise to SYMKLOUD portfolio of white box hardware and integrated open source solutions. This acquisition will secure two strategic objectives for Kontron: one, it bolsters its NFV and SDN offerings for telecoms, cable, and communications service providers (CSPs); and two, it expands an IT network operator customer base from which enterprises, The Internet of Things (IoT), and smart cities, among others, deploy open networking and hybrid cloud infrastructure.

“The go-to-market opportunities are enormous,” said Robert Courteau, General Manager, Kontron, communications business. “The open source software on open hardware strategy is rapidly gaining adoption among a broad base of service providers and private cloud operators – for both compute and networking. With Inocybe, we can now cater to both scenarios. We are certainly excited about how this will unlock our customers’ potential to freely choose what, when and how they deploy new and revenue-rich services.”

“The reality of 5G, IoT and cloud is driving tremendous momentum toward modernized networks that can respond to surging network demands and process data at the edge,” said John Zannos, General Manager, Inocybe. “Open software, like SDN, and open hardware are bringing the speed and flexibility needed for these next-generation networks to service providers and enterprise. Together, Inocybe and Kontron can enable networks to be open and automated, and the impact is transformative, reducing cost and creating new value through new services and better user experience.”

According to ACG Research, the potential for open source in the telecom service provider market is predicted to be worth $11B by 2023. Furthermore, open networking revenue for the datacenter and enterprise segments – specifically, from in-use SDN capable Ethernet switches – is expected to reach $13.5B by 2021, as reported by IHS Markit.

“By deploying SDN, service providers can get the most out of their hardware and software investments. SDN cost-effectively allows operators to provision, reconfigure bandwidth allocation, boost computing power and autonomy, and improve security within IoT networks,” said Christopher R. Wilder, Sr. Analyst for IoT, Moor Insights & Strategy. “Kontron’s acquisition of Inocybe demonstrates their commitment to delivering an open, viable solution that is secure, scalable, and integrated from the datacenter to the edge.”

Inocybe takes a unique SaaS-subscription approach with its Open Networking Platform (ONP) to produce solutions for ‘consumable’ networks. These include SDN Controllers based on OpenDaylight (ODL) and Open Networking solutions derived from other open source projects such as OpenSwitch, PNDA, and ONAP. As a top five contributor to OpenDaylight, Inocybe also sits on both the OpenSwitch and Linux Foundation Networking (LFN) boards.

“Open Source Networking projects are becoming fundamental building blocks for automated and disaggregated networks. We are excited to see innovators in the areas of open software and hardware join forces to create end-to-end solutions,” said Arpit Joshipura, General Manager, Networking & Orchestration, The Linux Foundation. “As a Gold Member of LF Networking, Inocybe has been very active in the community in several projects and we are looking forward to even more participation after joining forces with Kontron.”

“After many years at Inocybe, I am excited by the huge potential of this acquisition. By leveraging Kontron and S&T’s significant hardware portfolio with Inocybe’s activities across Open Networking Projects, this acquisition will help accelerate market adoption by providing the expected customer experience and quality,” said Mathieu Lemay, Founder of Inocybe and CSO of Kontron communications business.

“As someone who has had the privilege to be an integral part of Inocybe’s growth and ultimate transformation, I couldn’t be more thrilled by today’s acquisition,” said Kyle McDonald, Inocybe Chairman and industry veteran. “The two companies share a strong common vision, and together bring a significant competitive advantage that will solidify Kontron as a leader in the SDN marketplace.”

The Kontron SYMKLOUD portfolio features a range of rack-level converged hardware platforms plus white box solutions ideally suited to be one of the first open network operating system (NOS) switches managed by an ODL SDN controller. As part of its mission to simplify the integration of open source technologies, Kontron actively markets two fully integrated ‘out-of-the-box’ cloud solutions for deploying OpenStack and Kubernetes.

Clairfield International (Canada) acted as the exclusive buy-side advisor to Kontron (an S&T Company) in this transaction.

About Clairfield International:
Clairfield International (www.clairfield.com) provides corporate finance advisory services, mainly in cross-border mergers and acquisitions. Clairfield is a global investment banking firm headquartered in Europe with over 40 offices in over 25 countries operating through partner-managed entrepreneurial firms. For further information please contact: Press office, Clairfield International, Tel: +34 93 487 0330, email: press@clairfield.com, www.clairfield.com.

About Inocybe Technologies
Inocybe Technologies is the leading Open Networking technology provider from the data center to the network edge. Inocybe’s Open Networking Platform enables customers to deploy an integrated and consumable network based on the leading, emerging and innovative open networking software. The Inocybe Open Networking Platform accelerates the adoption of automated and intelligent networking for enterprises and service providers based on OpenDaylight, FD.io, PNDA and ONAP. For additional information contact us on Twitter @inocybetech or www.inocybe.com.

About Kontron in Communications
Kontron designs hardware for the software defined world. Service providers and enterprise clients around the globe collaborate with Kontron and its ISV and channel partners to deploy new services with greater speed, confidence and operational efficiency. Our portfolio is a best-of-breed of OEM hardware and SYMKLOUD Open Infrastructure Platforms dedicated to the deployment of virtual services using software defined networks (SDN) and network functions virtualization (NFV). For more information, please visit www.symkloud.com or www.kontron.com/communications.

About Kontron – An S&T Company
Kontron is a global leader in embedded computing technology (ECT). As a part of technology group S&T, Kontron offers a combined portfolio of secure hardware, middleware and services for Internet of Things (IoT) and Industry 4.0 applications. With its standard products and tailor-made solutions based on highly reliable state-of-the-art embedded technologies, Kontron provides secure and innovative applications for a variety of industries. As a result, customers benefit from accelerated time-to-market, reduced total cost of ownership, product longevity and the best fully integrated applications overall. Kontron is a listed company. Its shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange and on other exchanges under the symbol “KBC”. For more information, please visit: www.kontron.com

All rights reserved. Kontron is a trademark or registered trademark of Kontron AG. Intel^® and Intel^® Core™ are trademarks or registered trademarks of Intel^® Corporation in the US and other countries. PICMG^® and COM Express^® are trademarks or registered trademarks of the PCI Industrial Computers Manufacturers Group. SMARC ^TM is a trademark of the SGET e.V. (Standardization Group for Embedded Technologies e.V.). All other brand or product names are trademarks or registered trademarks or copyrights by their respective owners and are recognized. All data is for information purposes only and not guaranteed for legal purposes. Subject to change without notice. Information in this press release has been carefully checked and is believed to be accurate; however, no responsibility is assumed for inaccuracies.