Victoria’s Vecima Networks has acquired Atlanta-based Concurrent Technology in a $29 million USD deal, a move that Vecima said will allow the company to address a forecasted surge in global internet traffic over the next three years.
A 30-year-old hardware business, Vecima designs and manufactures products that enable broadband access to cable, wireless and telephony networks. Meanwhile, Concurrent is behind a video content delivery system, recognized as an industry leader in the Video on Demand (VoD) and IP Video Content Delivery space.
The move is timely for Vecima as the popularity of video services and live streaming steadily increases. In Cisco’s 2017 forecast for internet trends, the networking giant reported that IP traffic is expected to triple by 2021, reaching 3.3 zettabytes.
But a large part of that surge will be driven by video, anticipated to make up 82 per cent of total IP traffic. Now compare that figure to 2016 where 73 per cent of internet traffic comes from video.
With consumer VoD traffic expected to also double by 2021, Concurrent will help the veteran company address the boon in video traffic.
“Each of our organizations has strengths and expertise that we bring to the table, and together we create a comprehensive networking and entertainment ecosystem capable of delivering class-leading quality, capacity and performance,” said Sumit Kumar, CEO of Vecima.
Acting as a subsidiary of Vecima, the company said the acquisition means they’ll be able to serve a larger base of service provider customers with a “compelling product portfolio.”
“With diversified products, a greater market reach, a superior growth profile, and a strong balance sheet, we are well positioned to provide enhanced value to our customers and our shareholders,” Kumar added.
While the company is now headed in Victoria and has offices in Burnaby, Vecima started out in Saskatoon three decades ago and continues to be home to the company’s main manufacturing facility.
Last year, Vecima sold YourLink, one of Saskatchewan’s largest providers of high-speed wireless Internet solutions to rural and remote communities in the province.