Finisar Corporation is to acquire u²t Photonics AG for approximately $20 million (€14.6 million) in cash. Finisar will also assume a net debt of approximately $7 million (€5.1 million).
u²t Photonics is a supplier of high-speed indium-phosphide photo-detectors and integrated coherent receivers used for 100G systems and modules. The German company had revenues of $33 million (€24.2 million) in 2013.
Finisar and u²t Photonics announced in 2013 that they were jointly working on indium phosphide-based IQ Mach-Zehnder modulator technology developed at the Fraunhofer Heinrich-Hertz-Institute, suited for 100G transmitter designs. u²t Photonics also has gallium arsenide modulator technology which it claims has a performance similar to a lithium niobate modulator yet is considerably smaller. Indium phosphide modulators do not match the reach performance of gallium arsenide but are even smaller still.
These transmitter and receiver technologies combined with Finisar’s narrow line-width tunable laser means that the company now has all the optical components required to make 100 G and faster modules. Finisar will also be able to develop compact 100G line-side designs based on smaller CFP2 and CFP4 module form factors. Such modules will be needed as 100G is deployed widely in metro networks.
According to Ovum’s Daryl Inniss, vice president and practice leader, components, the optical components market is going through a transition where photonic integration is critical to support emerging telecom and datacom requirements. “The acquisition therefore strengthens Finisar’s position, as u²t’s expertise and the indium phosphide material system are well suited for the emerging requirements,” he said.
By Roy Rubenstein
Press release: Finisar to Acquire u²t Photonics AG to Strengthen Portfolio of World Class 100G Coherent Technologies
Optical connections: Finisar and u²t Partner to Acquire Exclusive Access to 100G Coherent Modulator Technology
Ovum: Finisar strengthens 100G coherent offering with u²t Photonics AG acquisition