Lumentum has acquired IPG Photonics Corporation's telecom transmission product lines, comprised of optical transceivers and coherent components. Financial terms were not disclosed.
The sale includes the former Menara Networks and a subsidiary in Brazil.
"I am very excited to add such highly complementary and differentiated transceiver product lines and ASIC capabilities, which help to expand our addressable market and augment our technology capabilities," said Dr. Beck Mason, SVP and General Manager, Telecom Transmission at Lumentum. "This acquisition brings a talented team developing digital communications ASICs, including coherent DSPs, which complements our silicon and indium phosphide photonic integrated circuit capabilities and creates opportunities for increased vertical integration in future optical transmission modules."
Dr. Mason added, "Increasingly customers in the cable MSO and wireless network operator space are turning to wavelength tunable pluggable transceivers to help expand their network capacity and this acquisition brings highly synergistic product lines addressing this rapidly growing opportunity."
“While we have made good progress in developing fundamental technologies in our telecom transmission business, our ability to scale these product lines would require a step-up in investment that we believe would be better spent on our core materials processing and adjacent markets. After an in-depth review, we have determined that participation in the broader telecom market is non-core to IPG’s strategy. Our strategy is to remain focused on revenue diversification and growth opportunities in markets where we can increase our value proposition to customers by delivering advanced laser processing and technology solutions. We are exploring substantial new markets and applications where fiber lasers are replacing existing laser and non-laser technologies by improving efficiency, productivity, or enabling technological breakthroughs for our customers. We would like to thank our telecom transmission employees for their contributions and wish them success with Lumentum, a market leader in optical communications," said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer.
IPG Photonics said the sale will have an immaterial effect on the company’s total revenue and earnings per share, but is expected to reduce R&D spending and operating expenses going forward. The reduction will help to offset some inflationary pressures, including merit increases, impacting the rest of the year.
IPG Photonics Acquires Menara Networks for Optical Pluggables IPG, Menara, Mergers And Acquisitions, Optical
IPG Photonics agreed to acquire Menara Networks, a supplier of enhanced optical transmission modules and systems for cable multi-system operators (MSOs), carriers and data centers, for $46.8 million in cash.
The companies recently announced a partnership to provide an integrated solution for simplified repeater-less 100G DWDM transmission for metro and data center interconnection. Menara’s cost and foot-print-saving product suite of 10G and 100G WDM modules eliminate the need for high-priced transponder systems.
IPG said the acquisition provides it with an entry into the growing optical pluggable systems market and leverages IPG’s international market access outside North America.
“The acquisition of Menara Networks is in line with our strategy to make bolt-on acquisitions that provide us with the talent, technology and products to enter large complementary markets,” said Dr. Valentin Gapontsev, IPG Photonics’ Chairman and CEO. “Since IPG was founded in the 1990’s, telecom products have been a staple offering for IPG, part of our DNA. This acquisition broadens and complements our telecommunications offerings and provides significant sales synergies. Together, we can offer our customers an expanded telecom technology platform with more integrated products with superior performance and economics. The acquisition also affords IPG a better position to capitalize on the robust growth of optical networking driven by video and broadband access.”
"The on-going shift to cloud based services and infrastructure has placed unprecedented strain on data centers and telecom/cable operators’ optical networks and presents a significant opportunity for Menara’s differentiated products,” comments Siraj Nour El-Ahmadi, Menara CEO, Chairman and Co-Founder. “We view the combination with IPG as a force multiplier to not only expand our market share vertically and geographically but just as importantly to bring about innovative and differentiated turn-key solutions that will effectively address the large and growing global DWDM market.”
http://www.ipgphotonics.com
http://www.menaranet.com
Menara Ships 120 km 10 Gbps Transceivers with OTN & FEC
Menara said it achieves 120 km reach on standard single mode fiber without the need for optical amplification and/or dispersion compensation. The unamplified 120 km reach is achieved as a result of Menara’s superior performance of its optical transmitter and receiver designs, and the integrated Forward Error Correction coding gain afforded by Menara’s proprietary integrated circuit. Menara 10 Gbps XFP 120 km reach transceivers are MSA compliant and Telcordia qualified, compatible with both 10G Ethernet and 9.96 Gbps SONET/SDH line rates, consume under 3.5 Watts, and are compatible with all major routers and MPLS switches in the industry.http://www.menaranet.com
