Lumentum, a developer of photonics products for optical networking and lasers for industrial and consumer markets, and Cambridge Industries Group, a supplier for the Information and Communication Technology industry, have announced a new deal and a partnership in which CIG will acquire certain optical transceiver product lines from Lumentum.
CIG will also enter a long-term strategic supply agreement for Lumentum’s photonic chips. The transceiver product lines to be acquired by CIG are developed and manufactured by Lumentum’s subsidiary Oclaro Japan.
Terms of the deal were not revealed. However, revenue attributable to the products to be sold in the proposed transaction is approximately US$20 million of the US$50 million to US$55 million of datacom revenues previously included in Lumentum’s guidance for the third fiscal quarter of 2019.
“I am pleased to partner with CIG and leverage our respective strengths to better address the market opportunity created by the growth in high-speed datacom and telecom client-side transceiver volumes driven by datacenter expansion and 5G wireless,” commented Walter Jankovic, Lumentum’s senior VP and general manager, Datacom.
Gerald Wong, CIG’s president and CEO, added, “This transaction enables Lumentum to become more commercially focused on its differentiated indium phosphide photonic chip capabilities and brings a new customer that is well positioned to compete in the datacom transceiver market.”
“With this acquisition and on-going partnership with Lumentum for supply of their industry leading photonic chips, together with CIG’s proven quality and volume JDM and ODM capabilities, CIG is expanding its capabilities with industry leading optical transceiver products and technology spanning the range of 10G, 25G to 400G serving many long-standing Tier 1 customers. We believe with the combination of CIG’s strengths in cost effective high-volume manufacturing, and Lumentum’s optical transceiver team in Japan with their decades of experience in high performance datacom and telecom transmission, we are well positioned to address customer needs in the datacom and telecom client-side transceiver market.”
The transaction, which is expected to close in the second calendar quarter of 2019, is subject to certain customary closing conditions for a transaction of this type. The sale is not expected to impact the guidance ranges provided on February 5, 2019 for Lumentum’s third fiscal quarter, ending March 30, 2019.
For more information, visit www.lumentum.com