M&A

Rohde & Schwarz merges Lancom with cyber arm to complete European network stack

What's the deal? German technology group Rohde & SchwarzDealroom has a profile for this one. Try Dealroom → has merged network specialist LANCOM SystemsDealroom has a profile for this one. Try Dealroom → with its cybersecurity branch, R&S CybersecurityDealroom has a profile for this one. Try Dealroom →. The combined organisation will operate as Rohde & Schwarz Networks and Cybersecurity, bringing network infrastructure and security under one roof.

What's the endgame? The move completes Lancom's portfolio. "A network normally consists of routing, firewall, switch, and access point to form a nice campus network," co-CEO Robert Mallinson told ITdaily. The cybersecurity arm adds layer two and layer three network encryption, plus quantum key distribution — the missing firewall and encryption piece.

Lancom, founded in 2002 and grown out of GPU specialist Elsa AG, built a portfolio spanning routing, switching, and Wi-Fi, managed via its cloud-based Lancom Management Cloud. Rohde & Schwarz took an initial stake in 2016 and fully acquired the company in 2018.

The cybersecurity branch originated from GateprotectDealroom has a profile for this one. Try Dealroom →, a firewall specialist Rohde & Schwarz acquired earlier. The wider group, with nearly 70 locations worldwide, is rooted in test and measurement equipment and also runs a defence and aerospace division.

Why now? Mallinson gives two reasons. Lancom first had to become a "full-fledged network player" serving everything from small retail sites to large campus networks — a stage it has now reached.

The second reason is market demand. "The demand for cybersecurity and digitalization has been ongoing for twenty years, but it is really gaining momentum now," Mallinson said. Customers increasingly want not just a network, but a secure one.

Mallinson frames the combination as internal rather than disruptive. "The merger is not an abrupt takeover, but the logical conclusion of a long process," he said, describing it as a step to appeal to both customers and partners.

The signal: The deal reflects a broader convergence of networking and security into single offerings, positioning Rohde & Schwarz as a European vendor able to sell secure network infrastructure as one integrated stack.

Read more: ITdaily

Image credit: torkildr

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