Corning Acquires SpiderCloud, Expands In Wireless Market
Zacks Investment Research | Jul 19, 2017 11:19PM ET
Corning Inc. (NYSE:GLW) recently announced that it has completed the acquisition of scalable small cell systems provider SpiderCloud Wireless. The company will be integrated into Corning’s Optical Solutions business.
However, the terms of the deal were not disclosed. According to a recent article by RCR Wireless News, SpiderCloud was worth approximately $200–$250 million or 2.0-2.5 times of 12-month forward revenues.
Small cells are effective in supplementing macro networks to provide superior coverage and capacity indoors as well as outdoors. SpiderCloud’s Enterprise Radio Access Network (E-RAN) system uses high capacity enterprise small cells (Radio Nodes) and small cell controller (Services Nodes) to provide reliable coverage as well as massive capacity in indoor environments.
Notably, telecom operators like Verizon (NYSE:VZ) and Vodafone (NASDAQ:VOD) recognize E-RAN’s expertise in delivering high indoor capacity. SpiderCloud notes that a dual-carrier LTE system with just 24 radio nodes can offer more than 2.5 Gbps of throughput, enough to stream 500 HD video streams. An E-RAN system with 100 radio nodes can do four times as much.
We note that the addition of SpiderCloud will help Corning to offer indoor cellular solutions. The expansion of the company’s product portfolio will help it to rapidly penetrate the wireless network equipment market going forward.
Share Price Momentum to Continue
Corning has outperformed the S&P 500 on a year-to-date basis. While the index gained 12.1%, the stock returned 32.2% over the same time frame.
We believe that growing demand for Corning’s fiber optics products, as evident from the Zacks Investment Research
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