Lumentum bulks up with NeoPhotonics buy

Lumentum is to acquire fellow component and module specialist, NeoPhotonics, for $918 million.

The deal will expand Lumentum’s optical transmission product line, broadening its component portfolio and boosting its high-end coherent line-side product offerings.

Vladimir Kozlov

Gaining NeoPhotonics' 400-gigabit coherent offerings will enable Lumentum to better compete with Cisco and Marvell. Lumentum will also gain a talented team of photonics experts as it looks to address new opportunities.

Alan Lowe, Lumentum’s president and CEO, stressed the importance of this collective optical expertise.

Speaking on the call announcing the agreement, Lowe said the expanded know-how would benefit Lumentum’s traditional markets and accelerate its entrance into other, newer markets.

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ADTRAN-ADVA's metro-access play

ADTRAN and ADVA have agreed to merge after a long courtship.

The two CEOs have spoken regularly over the years but several developments spurred them to act.

Tom Stanton, ADTRAN CEO

The merger combines ADTRAN’s expertise in access technologies with ADVA’s metro wavelength-division multiplexing (WDM) know-how to create a ‘metro-core-to-door’ company with revenues of $1.2 billion.

As such, the merger promises to double their size and networking skills. Yet the stock market appeared underwhelmed by the announcement, with ADTRAN’s shares down 16% for the rest of the week after the deal was announced. 

Market research analysts, however, are more upbeat.

“ADTRAN and ADVA have a better path forward together than separately,” said John Lively, principal analyst at LightCounting Market Research, in a research note.

The deal is expected to close in the second or third quarter of 2022 but only after several hurdles are overcome in what is described as a complex deal.

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Nokia buys Elenion for its expertise and partnerships

Nokia will become the latest systems vendor to bolster its silicon photonics expertise with the acquisition of Elenion Technologies. 

The deal for Elenion, a privately-held company, is expected to be completed this quarter, subject to regulatory approval. No fee has been disclosed.

Kyle Hollasch

“If you look at the vertically-integrated [systems] vendors, they captured the lion’s share of the optical coherent marketplace,” says Kyle Hollasch, director of optical networking product marketing at Nokia. “But the coherent marketplace is shifting to pluggables and it is shifting to more integration; we can’t afford to be left behind.”   

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Is ADVA Optical Networking looking to buy ECI Telecom?

Is ADVA Optical Networking preparing a bid for private company ECI Telecom? The latest consolidation rumour involving the two mid-tier metro players comes after Infinera’s announcement that it is acquiring Coriant, a deal that is expected to close this quarter. 

According to a source in the financial sector, ADVA wanted to acquire Coriant but failed to raise the required funds. Infinera’s successful bid for Coriant has led ADVA to consider alternatives as it looks to secure its future in a consolidating marketplace, with ECI Telecom being viewed as an attractive target. 

ECI Telecom is reportedly considering an initial public offering (IPO) on the London Stock Exchange to raise $170 million. A source close to ADVA confirmed that ‘ECI is looking for a home’ but declined to comment on whether ADVA is involved. Another source close to ADVA suggested that there may be some truth in such a bid.

ADVA declined to comment. 

An ECI spokesperson said the company has issued no statement regarding an IPO and expressed surprise when asked if ECI was looking to merge. The spokesperson declined to comment when asked about ADVA acquiring ECI. 

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Infinera buying Coriant will bring welcome consolidation

Infinera is to purchase privately-held Coriant for $430 million. The deal will effectively double Infinera’s revenues, add 100 new customers and expand the systems vendor’s product portfolio.

Infinera's CEO, Tom FallonBut industry analysts, while welcoming the consolidation among optical systems suppliers, highlight the challenges Infinera faces making the Coriant acquisition a success.   

“The low price reflects that this isn't the best asset on the market,” says Sterling Perrin, principal analyst, optical networking and transport at Heavy Reading. “They are buying $1 of revenue for 50 cents; the price reflects the challenges.”   

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Ciena shops for photonic technology for line-side edge

Briefing: DWDM developments

Part 3: Acquisitions and silicon photonics

Ciena is to acquire the high-speed photonics components division of Teraxion for $32 million. The deal includes 35 employees and Teraxion’s indium phosphide and silicon photonics technologies. The systems vendor is making the acquisition to benefit its coherent-based packet-optical transmission systems in metro and long-haul networks.

Sterling Perrin

“Historically Ciena has been a step ahead of others in introducing new coherent capabilities to the market,” says Ron Kline, principal analyst, intelligent networks at market research company, Ovum. “The technology is critical to own if they want to maintain their edge.”

“Bringing in-house not everything, just piece parts, are becoming differentiators,” says Sterling Perrin, senior analyst at Heavy Reading.    

Ciena designs its own WaveLogic coherent DSP-ASICs but buys its optical components. Having its own photonics design team with expertise in indium-phosphide and silicon photonics will allow Ciena to develop complete line-side systems, optimising the photonics and electronics to benefit system performance.

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Mellanox to acquire silicon photonics player Kotura

Source: Gazettabyte

Mellanox Technologies has announced its intention to acquire silicon photonics player, Kotura for $82 million.

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