Combined entity a catalyst to accelerate deployment of LTE networks
San Jose, California — March 17, 2015 — Fastback Networks® and Sub10 Systems today announced the merger of the two companies to create a single best of breed wireless backhaul company. The combined company is positioned on the leading edge of innovation for the high performance backhaul solutions essential to enable the pervasive deployment of LTE, LTE-A, VoLTE, 4G and 5G mobile networks. The combined entity will address what is forecast to be a $1.6B* market for sub-6 GHz and millimeter-wave solutions, the fastest growing segments of the mobile backhaul market. The companies’ intellectual property and technology platforms, each of which have been adopted by Tier 1 mobile operators, will be converged to create the industry’s first hybrid Any Line of Sight (AnyLOS™) backhaul solutions.
Both Fastback and Sub10 were founded with a vision to apply advanced and novel technology to pioneer solutions in sub-6 GHz and millimeter wave spectrum (60 GHz, 70/80 GHz), recognizing that legacy backhaul is inadequate for LTE networks. In dense urban environments, flexibility in site location and frequency allocation can mean the difference between service and no service or high and low capacity. Merging the companies’ technology platforms to deliver dynamic multiple frequency pairing, together with Line of Sight (LOS) and Non Line of Sight (NLOS) capabilities, dramatically expands the options for mobile network operators, their connectivity partners and enterprise customers.
“Traditional backhaul is a weak link in the LTE/5G chain, hindering wireless service growth, and driving demand for innovation in high performance backhaul solutions,” said Kevin Duffy, CEO & Co-founder, Fastback Networks. “With this merger, we are consolidating best of breed intellectual property, technology, human talent and investor syndicates to address that opportunity and to be a catalyst and enabler for the acceleration of dense LTE/5G deployments.”
“Fastback’s sub6GHz and Sub10’s millimeter wave solutions and technology are complementary LOS and NLOS solutions, sharing high performance and low latency characteristics. Our merged company will provide the combination of these solutions that our customers require to enable densification of mobile networks,” said Stuart Broome, Chief Sales and Marketing Officer, Fastback Networks and former CEO and Co-founder, Sub10 Systems. “Today our combined products are unmatched in meeting the high throughput, low latency, and high reliability requirements of LTE macro and small cell backhaul, as well as critical high performance connectivity applications in private networks. Going forward, innovations from our combined teams and technology can enable a systems level platform that operates across disparate frequencies providing a single high performance solution suitable to the widest possible range of radio conditions.”
“Small cell deployments have taken some time to take off. One of the remaining challenges is backhaul, and whilst there are solutions available there remains an opportunity for a vendor to take up a disruptive position,” said Richard Webb, Senior Principal Analyst, Mobile Backhaul and Small Cells, Infonetics Research. “The merger of Fastback’s any line of sight technology with Sub10 Systems millimeter wave portfolio looks like an innovative combination that could give operators a genuine alternative to solutions already on the market.”
Fastback Networks and Sub10 have collectively received financing of over $50M. The combined investor syndicates are amongst the largest in the technology sector including Business Growth Fund, Foundation Capital, Granite Ventures, Harmony Partners, Juniper Networks, and Matrix Partners. All of the previous investors in the two companies are participating investors in the new combined company. Sub10 Systems’ principal investor, the $3.75b Business Growth Fund (BGF), which is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered, will participate in the Fastback Board of Directors as an observer.
Ned Dorbin, BGF Investment Director, commented: “Sub10’s merger with Fastback represents a particularly exciting development, not only for the company, but also for BGF as a long-term investor in the business. We continue to be very supportive of Sub10’s growth strategy in a rapidly evolving market and its technical excellence in high performance wireless backhaul technology has been key to its on-going success.
“It is fantastic to see world leading technology being established by a UK business and the merger with Fastback will allow Sub10 to flourish on a truly global scale. We look forward to continuing our work with Stuart and his team as well as supporting Fastback’s management and investors. We are delighted to be involved in the next phase of growth for both companies as a partner investor.”
Positioned for Fastest Growing Mobile Backhaul Markets
Both Fastback and Sub10 have experienced uncommon early success and the solutions are commercially deployed with Tier 1 mobile operators in Europe and North America. Both companies have pioneered high performance solutions with attractive economics, and established industry leading positions in their respective categories.
The merged company will leverage common silicon and system technology to more quickly and efficiently capture a larger share of the fastest growing segments of the wireless backhaul market: sub-6 GHz, 60 GHz, and 70/80 GHz (millimeter wave). As a result of the speed and flexibility of sub-6GHz and the sheer capacity of millimeter-wave, these segments are forecasted* to experience CAGR of 36% from 2014 – 2019, to become a $1.6B market in 5 years, far outpacing the remainder of the microwave backhaul market in growth. This growth is driven by the combination of LTE/LTE-A upgrades, demand for higher capacity backhaul, and growing demand for denser cellular networks via new LTE macro cell and small cell deployments.
Fastback Networks and Sub10 Systems, Ltd, combined, will operate as Fastback Networks. This new entity of 75 people will continue to be headquartered in San Jose, CA. The Sub10 Systems operation in Devon, UK, will become the new European headquarters for Fastback. The founders and existing executives of both companies will lead the merged entity. Fastback co-founders, Kevin Duffy, CEO, and Kevin Negus, CTO will remain in the same roles. Sub10 Systems co-founders will join the executive team of Fastback with global responsibility. Stuart Broome joins as Chief Sales and Marketing Officer responsible for the company’s efforts to drive revenue around the world. Mark Stevens joins Dr. Kevin Negus in an expanded CTO office where together they will be responsible for the combined company’s advanced technology and product roadmap. Both company brands will be maintained in the short-term with an orderly transition to the Fastback brand over time.
About the new Fastback Networks
Fastback Networks was founded with a vision to deliver innovative technology for the mobile infrastructure of the future. Fastback solutions enable network operators to expand and enhance services, and private networks to secure, monitor and manage operations via high capacity data connectivity. With insights derived from the collective team’s experience building leading edge radio and data networking solutions, Fastback Networks looks at the challenges of 4G/5GLTE deployment with fresh eyes and better ideas, and develops transformational mobile backhaul solutions that enables the acceleration of the mobile future. Fastback Networks is a privately held company funded by Business Growth Fund, Foundation Capital, Granite Ventures, Harmony Partners, Juniper Networks Junos Innovation Fund, and Matrix Partners. More information is available at www.fastbacknetworks.com.
Fastback Networks, Intelligent Backhaul Radio (IBR), are registered trademarks or trademarks of Fastback Networks. Copyright 03/2015, Fastback Networks. All rights reserved.