Itdaily - Lancom merges into Rohde & Schwarz Networks and Cybersecurity: why and why now?

Lancom merges into Rohde & Schwarz Networks and Cybersecurity: why and why now?

Illuminated sign with the Rohde & Schwarz logo: blue letters on a grey background.

Network specialist Lancom is merging with the cybersecurity branch of parent company Rohde & Schwarz. Together, they will continue under the name Rohde & Schwarz Networks and Cybersecurity: a European player bringing network infrastructure and security under one roof.

Earlier this month, Lancom merged with Rohde & Schwarz Cybersecurity and will henceforth be known as Rohde & Schwarz Networks and Cybersecurity. This sees two parts of the same German technology group grow together into a single organization providing both network and security solutions.

“The merger is not an abrupt takeover, but the logical conclusion of a long process,” clarifies Robert Mallinson, co-CEO of the new company, to ITdaily. He frames the establishment of R&S Networks and Cybersecurity as an important step in a process intended to appeal to both customers and partners.

The merger is not an abrupt takeover, but the logical conclusion of a long process.

Robert Mallinson, co-CEO R&S Networks and Cybersecurity

Rohde & who?

A bit of context might be useful here. Rohde & Schwarz is a globally active German technology company with nearly seventy locations worldwide. The group has its roots in test and measurement equipment, which remains the company’s first major pillar today. Additionally, there is a division focused on defense and aerospace, where Rohde & Schwarz provides communication and reconnaissance technology for land, sea, air, and space.

The cybersecurity branch of R&S had already been a separate arm within the group for some time. It originated from Gateprotect: a firewall specialist acquired by Rohde & Schwarz. The expertise now moving to the merged company primarily revolves around layer two and layer three network encryption, supplemented by technology such as quantum key distribution.

This type of security is crucial when sensitive data is sent across different locations without being tampered with. Furthermore, this knowledge aligns well with Lancom’s expertise and is relevant for customers in the same context.

From router to full network

Lancom existed for 24 years and originated from GPU specialist Elsa AG. During that time, Lancom built a broad network portfolio. The company started with routing and connectivity, later expanding into switching and Wi-Fi. Lancom layered the Lancom Management Cloud, a cloud-based management platform, over the entire suite. In recent years, the switching portfolio grew from a focus on access to the addition of aggregation, allowing Lancom to serve larger campus networks as well.

Lancom had not been an independent player for some time. Rohde & Schwarz acquired an initial stake in the company in 2016 and fully acquired Lancom in 2018. What was still missing from the portfolio was that one crucial puzzle piece: the firewall. “A network normally consists of routing, firewall, switch, and access point to form a nice campus network,” Mallinson explains. With the encryption technology from the cybersecurity branch added, that puzzle is now complete.

Why only now?

If Lancom has been fully owned by Rohde & Schwarz since 2018, why is the merger only happening in 2026? According to Mallinson, there are two reasons. “Lancom first had to grow into a full-fledged network player with a complete offering tailored from small retail locations to large networks.” Lancom’s natural growth, combined with the security expertise of R&S Cybersecurity, has now created the right conditions.

The second reason lies in the market. “The demand for cybersecurity and digitalization has been ongoing for twenty years, but it is really gaining momentum now,” says Mallinson. Today, customers don’t just want a network; they want a secure network.

The demand for cybersecurity and digitalization has been ongoing for twenty years, but it is really gaining momentum now.

Robert Mallinson, co-CEO R&S Networks and Cybersecurity

Furthermore, a merger is no small feat. “Bringing two companies together in terms of tools, systems, and processes is something we have worked on for over a year and a half.” The organization now has approximately 550 employees, coming from just over 400 at Lancom and about a hundred from the cybersecurity branch.

Four segments, one point of contact

Within the new structure, R&S Networks and Cybersecurity operates around four segments: corporate network solutions, public network solutions, defense network solutions and critical infrastructure network solutions. Within each segment, the company defines concrete use cases based on input from sales, partners, and customers. This input goes through a development steering board to the R&D department, which turns them into products.

The benefits of the merger are found in three areas: customers, partners, and R&D. Partners previously had to deal with two separate partner models, two certifications, and two ways to purchase equipment. “Instead of two contacts, they now have one point of contact,” says Mallinson. Customers, in turn, gain access to a more complete offering, and synergies are also created in terms of development.

We don’t have the R&D budget of Cisco and we don’t have the mass production of Ubiquiti.

Robert Mallinson, co-CEO R&S Networks and Cybersecurity

Regarding market positioning, the new R&S Networks and Cybersecurity is not aiming for the very largest multinationals, but for what Mallinson calls the middle ground. “We don’t have the R&D budget of Cisco and we don’t have the mass production of Ubiquiti, but what we do have is trust and German engineering.”

Specifically, Mallinson points to retail as a traditionally very important sector. Lancom has a strong foothold there. The financial sector and the so-called German Mittelstand (large SMEs by Benelux standards) are also key focus points. Additionally, there is broad critical infrastructure, which he defines much more broadly than just energy and water. “Anyone who supplies 3,200 stores and thus provides food for a third of society is also critical infrastructure.”

Europe as an asset

Furthermore, the profile of a European supplier is worth more than it was a few years ago. According to Mallinson, trust, German support, and digital sovereignty are carrying increasing weight in organizations’ purchasing decisions. Incidents regarding access to systems and data have fueled this awareness, and even multinationals are now reaching out because of this issue of trust.

To reinforce this European independence, R&S Networks and Cybersecurity founded SafeNet together with industry peers Fritz (AVM), TDT, and Devolo. The Sovereignty Alliance for European Network Technology aims to reduce dependence on non-European network suppliers and advocates for more attention to routers and network equipment in European technology policy.

“We want to remain connected to the world, but as Europe, we want to increase our independence in certain capacities,” Mallinson concludes. For existing Lancom customers, he promises that little will change, except for the better: a simpler partner program and a broader offering with deeper security expertise regarding the network.