IPG Photonics agrees to acquire Padtec Submarine Networks Division

The acquisition enables IPG to leverage core pump laser and fiber amplifier technology to advance submarine networking.

IPG Photonics Corporation (Oxford, MA; NASDAQ: IPGP) today announced that it has signed a definitive agreement to acquire the submarine networks division (SND) of Padtec SA, a communications equipment company based in São Paulo, Brazil. Padtec SND is a provider of submarine networking technology and systems. The transaction has been approved by the Board of Directors of each company. Subject to satisfaction of customary closing conditions, the transaction is expected to close in the first quarter of 2019.

Padtec SND is a provider of submarine networking technologies, including optical line amplifiers (repeaters), as well as project planning, management, and execution services. Padtec SND's innovative undersea repeater technology and flexible business model align with the technical and business requirements of next-generation data center and Internet technology companies that are increasingly deploying submarine cable networks worldwide.

The acquisition of Padtec SND enables IPG to leverage core pump laser and fiber amplifier technology to advance the market for submarine networking systems says Ekaterina Golovchenko, IPG Photonics' Vice President of Telecommunication Systems. The selection of Padtech SND by a large Internet service provider to manage and execute the deployment of a high capacity submarine cable network in Brazil underscores their advanced submarine networking technologies, she adds, and says that combining Padtec SND's submarine network capabilities with IPG's high-power optical amplifier, Raman pumping, and WDM systems technologies allows them to capitalize on the growing number of undersea cable network deployments around the world.

SND has approximately 30 employees. The acquisition is not expected to be material to IPG's financial results for the fiscal year ended December 31, 2019.

SOURCE: IPG Photonics; https://investor.ipgphotonics.com/press-releases/press-release-details/2019/IPG-Photonics-Announces-Agreement-to-Acquire-Padtec-Submarine-Networks-Division/default.aspx

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