NeoPhotonics to acquire Emcore’s tunable laser products 

Created November 5, 2014
News and Business

NeoPhotonics will become the industry’s main supplier of narrow line-width tunable lasers using an external cavity design with the acquisition of Emcore’s tunable laser and optical transceiver assets.

NeoPhotonics will become the industry’s main supplier of narrow line-width tunable lasers using an external cavity design with the acquisition of Emcore’s tunable laser and optical transceiver assets.

The company announced it had entered a definitive agreement with Emcore, and expects the $17.5 million deal (€14.0 million) to be completed in January 2015. 

Emcore and NeoPhotonics are the leading suppliers of tunable lasers for the 100G coherent market, according to market research firm, Ovum, with Emcore’s tunable laser being the grand prize of the agreement. Other assets include Emcore’s integrable tunable laser assembly (ITLA), micro ITLA, tunable XFP transceiver, tunable optical sub-assemblies, and integrated coherent transmitter products for 10, 40, 100 and 400G networks. 

External cavity lasers are tricky to make but Emcore has extensive experience and delivers among the best lasers for coherent transmission, said analyst Daryl Inniss, author of the Ovum research note. The deal will concentrate the main industry suppliers of tunable lasers, strengthening their hand when negotiating prices with system vendors, said Inniss, who added that Skorpios Technologies is developing an external cavity laser for coherent transmission.

Tim Jenks, chairman and CEO of NeoPhotonics, said in a webcast announcing the deal, that the companies’ tunable lasers are complementary: Emcore’s narrow line-width laser is suited to long-distance spans and advanced modulation schemes that support 400G and beyond, whereas NeoPhotonics’s distributed feedback (DFB) laser array benefits metro networks and intermediate links where power consumption and design compactness are key design considerations.     

NeoPhotonics expects the result of the deal to grow its revenues from the second quarter of 2015. The company provided revenue guidance of $80 – $82 million (€63.9 – €65.5 million) for the third quarter 2014. 

By Roy Rubenstein

See also:

Press release:  NeoPhotonics announces acquisition of Emcore’s narrow linewidth tunable laser product line 
Ovum Research note: NeoPhotonics strikes good deal in acquiring Emcore’s tunable laser

This article was written
by Roy Rubenstein

is the editor of gazettabyte.com and has been researching and writing about the telecom and semiconductor industries for over 20 years.