E-Tek acquires ElectroPhotonics
In a move that will add new technical expertise to its repertoire, E-Tek Dynamics has signed an agreement to acquire privately held ElectroPhotonics Corp. (Toronto, Ontario, Canada). Shares of E-Tek common stock and cash with an aggregate value of approximately $40 million will be exchanged for all outstanding shares of ElectroPhotonics. "The advances that ElectroPhotonics has made in optical monitoring and dispersion compensation allow E-Tek to expand in two areas that we believe will provide key solutions to our customers as they build increasingly complex optical networks," said E-Tek chairman and CEO Michael Fitzpatrick. ElectroPhotonics president and CEO Tino Alavie sees in E-Tek strong manufacturing and distribution capabilities that will reach a larger market.
ADC Telecommunications buys Spectracom
Two years after its founding, Spectracom (White Bear Lake, MN) has been acquired by ADC Telecommunications (Minneapolis, MN), which seeks to become a major supplier of passive and active optical components and modules to telecommunications OEMs. The deal is valued at up to $105 million, with $60 million paid in cash at closing and a possible additional $45 million payable based on future technology developments. Spectracom has developed high-power 980-nm pump laser diodes and modules for use in erbium-doped fiber amplifiers. ADC has been expanding its technology base through several recent acquisitions such as Princeton Optics (Princeton, NJ).
Corning to benefit from NZAT's speedup
NZ Applied Technologies Corp. (NZAT; Woburn, MA) announced that it is accelerating the development of optoelectronic components intended for use in dense wavelength-division-multiplexing systems. NZAT's proprietary device technology and packaging architecture were attractive enough to Corning Incorporated (Corning, NY) that the two firms entered a business agreement last year in which NZAT has been supplying Corning with components in evaluation quantities. NZAT is eager to find a place in a market that it estimates will exceed several billion dollars in the next five years.
Nortel cuts work force, sells facilities
Nortel Networks (Brampton, Ontario, Canada) announced it is selling plants and cutting 1000 jobs as part of a restructuring plan to make the company more competitive. It is laying off a total of 4000 employees, but expects 3000 to be hired by contract manufacturers that are picking up Nortel contracts to manufacture circuit boards. Nortel is divesting itself of all but its most complex circuit-board-assembly plants, most of its electromechanical manufacturing, and a significant part of its repair business. The layoffs and divestiture reflect Nortel's move to manufacturing data, voice, and video equipment and away from strictly telecommunications equipment.
New investments bolster Kymata expansion
Kymata (Livingston, Scotland), a manufacturer of optoelectronic devices, has garnered investments of £10 million (approximately $16.2 million) to build a commercial fabrication facility. The plant will feature an advanced silica-on-silicon processing line for 15-mm wafers to meet high-volume demand for advanced optical-networking components. The company received £6 million ($9.8 million) from venture-capital firm 3i, which now owns 40% of Kymata. It also received funds from Glasgow University (Glasgow, Scotland), members of its management team, and a regional selective-assistance grant.
Also in the news...
For approximately $2.87 billion, Tyco International (Hamilton, Bermuda) has acquired electronics and telecommunications manufacturer Raychem Corp. (Menlo Park, CA), which will merge with Tyco subsidiary AMP (Harrisburg, PA). . . . Spectran Corp. (Sturbridge, MA) projects that its net sales in 1999 will grow by more than 25% and at a compound rate of 12% -15% through 2003. . . . On July 1, Nippon Telegraph and Telephone Corp. (NTT; Tokyo, Japan) becomes a holding company for regional companies NTT East and NTT West and for long-distance/international company NTT Communications.