Tuesday, March 1, 2005

NeoPhotonics Acquires Stake in China's Largest Optical Supplier

NeoPhotonics, a developer and manufacturer of PLC-based (planar lightwave circuit) integrated optical modules and subsystems , has become the largest shareholder in Photon Technology Co., (Shenzhen) following the acquisition of all of the formerly state-owned, shares, or approximately one-third of all outstanding shares, for consideration of cash and stock. Terms were not disclosed.

Founded in 1993 as a majority state-owned enterprise, Photon has become China's largest manufacturer of "active" optical components for broadband access and backbone optical networks. Products include a vertically integrated line of cost effective component and subsystem solutions, from active component diodes and subassemblies through modules, subsystems and broadband equipment.

The companies said their merger would create "the broadest and deepest optical component capability in the industry today, with advanced solutions that combine active and passive components into products and modules." Specifically, the two companies combine next generation passive PLC technology with high volume laser and transceiver manufacturing capability.

Numerous new product collaborations already are underway, including the integration of active lasers with passive filtering and alignment on a PLC substrate for low cost triplexers for FTTP, as well as transceiver modules and integrated ROADMs.

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