Telecom Lead Middle East: In a bid to widen its product
lines primarily for telecom applications, Finisar Corporation has agreed to
acquire RED-C Optical Networks, a Delaware corporation, with subsidiary
operations in Tel Aviv, Israel.
The acquisition will enable Finisar to add amplification
technologies such as Erbium Doped Fiber Amplification (EDFA), Raman
amplification and dynamic Hybrid amplification to its product line.
“As we have further penetrated the line card market
with our differentiated WSS technology, we see this acquisition as a tremendous
opportunity to further innovate for our customers and advance our vertical
integration strategy,” said Eitan Gertel, chief executive officer at
In order to acquire RED-C, Finisar will pay in cash
approximately $23.7 million in initial consideration for all of RED-C’s
As of March 31, 2012, RED-C had $3.2 million of cash and
no debt. Finisar will also pay to stockholders and certain RED-C employees
up to an additional aggregate of $20 million payable in cash or in shares of
Finisar common stock at Finisar’s option.
“We expect RED-C’s high performance EDFAs and Raman
amplifiers, currently deployed in optical networks around the globe, to
continue to deliver strong growth for the RED-C business,” said John
Clark, executive VP, Technology and Global R&D at Finisar,
Finisar expect additional growth opportunities for the
novel Hybrid Raman EDFA platform. Furthermore, the company anticipates that
RED-C’s Hybrid optical amplification platform will replace standard EDFAs for
next-generation LH and ULH optical networks.
Founded in 2000, RED-C has over 140 subsidiary employees,
all of whom are located in Israel.
Over completion of the transaction,the RED-C business
will operate as a subsidiary of Finisar, with principal operations continuing
at its current facility in Israel.
Finisar launches 100G modules for telecom networks at OFC/NFOEC
In March, Finisar Corporation launched two new 100G
modules — a 100G coherent OIF transponder and a 100G DWDM CFP with
SpectraWave, an all-optical DWDM transport platform.