Wednesday, November 30, 2005

Finisar Acquires Big Bear for 40 Gbps Transponders

Finisar Corporation acquired all of the optical transponder assets of Big Bear Networks for $1.9 million in cash. The assets purchased include equipment, inventory and intellectual property associated with Big Bear's 10Gigabit Ethernet Xenpak and X2 transponders and their industry leading 40Gigabit transponder that has already been qualified by a number of telecom equipment companies.

Big Bear Networks realized approximately $4.0 million in revenues for transponder sales during calendar 2005 through October 31, most of which was for 40 Gbps products. Finisar will move all acquired assets into its facilities in Northern California and believes that the transaction will be neutral to its bottom line during the first year of operations.

  • In November 2003, Big Bear Networks, a start-up based in Sunnyvale, California raised $18 million in a third round of private venture funding for its next-generation 10 and 40 Gbps optical system products. Big Bear said its electronic dispersion compensation technology automatically corrects for the fiber impairments (e.g., modal dispersion, chromatic dispersion, polarization mode dispersion) that become more severe as systems move toward greater speeds and transmission distances. This round of funding was led by Menlo Ventures. Other participants include previous investors Accel Partners, Austin Ventures, Oak Investment Partners, and Sequoia Capital.

  • In January 2002, Big Bear raised $40 million in its second round of private funding. Lead investors for the Series B funding were Austin Ventures, Austin, Tex., and Menlo Ventures, Menlo Park, Calif. Other participants in the current round include Oak Investment Partners, Menlo Park; as well as original investors Accel Partners and Sequoia Capital, which together invested $20 million in Big Bear in June 2000.

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