Optium to pay $35 million for Kailight Photonics

HORSHAM, PA-Consolidation continues in the optical components market. Optium Corporation, a supplier of optical subsystems for the telecom and cable TV industries, announced at the recent OFC/NFOEC conference that it has entered into a definitive agreement to acquire Kailight Photonics (Dallas, TX), a privately held provider of 40Gb/s optical transmission products.

Apr 1st, 2007

HORSHAM, PA-Consolidation continues in the optical components market. Optium Corporation, a supplier of optical subsystems for the telecom and cable TV industries, announced at the recent OFC/NFOEC conference that it has entered into a definitive agreement to acquire Kailight Photonics (Dallas, TX), a privately held provider of 40Gb/s optical transmission products. Optium will pay $35 million in cash for Kailight. The acquisition is expected to close within 45 days, subject to customary closing conditions and regulatory approvals.

According to the companies, Kailight’s 40Gb/s technology is expected be a key driver in the transition from custom line card solutions to module-based solutions, while providing a cost-effective path for customers to migrate to next generation modulation formats. Kailight transceivers have been qualified with several system integrators and have begun shipping in pre-production quantities.

The acquisition will build on Optium’s broad suite of optical transport solutions, which features fully wavelength agile DWDM, SONET and 10GE transceivers and subsystems, 10Gb/s pluggable transceivers, CATV trunking and distribution subsystems and Optium’s next generation WSS ROADM product line. In addition, this acquisition will enable Optium to provide full line card solutions of all variations of 40Gb/s applications.

“We believe that the combined strength of the two companies will optimize Kailight’s next generation 40Gb/s technologies and intellectual property by leveraging Optium’s proven skills in bringing advanced technologies to market as well as its strong customer relationships,” said Sagie Tsadka, president and CEO of Kailight.

Optium reported record revenues of $34.1 million for the second quarter of fiscal 2007, an increase of 14% over the prior quarter and 113% over the second quarter of the prior year. Net income for the quarter was $3.9 million.

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