Market Overview

Kontron Communications Business Acquires Inocybe

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Inocybe acquisition strengthens the Kontron NFV / SDN and Cloud
Native strategies to target the multi-billion dollar ‘open software on
open hardware' market opportunity among service providers, hyperscale
and enterprise network operators.

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.comwww.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
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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.

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