Categories
Brands
Information
News
Share This Web
Shopping Cart
Bestsellers
Featured
Finisar to gain amplifier vendor RED-C Optical Networks
Finisar Corp. (NASDAQ: FNSR) will again expand through acquisition. The optical component and subsystems vendor has revealed it has agreed to acquire all of the outstanding equity interests in RED-C Optical Networks, Inc., a developer of optical amplifiers. Finisar will pay approximately $23.7 million cash initially, as well as an additional $20 million in cash or shares of Finisar common stock to stockholders and certain RED-C employees if financial performance targets are met during calendar 2013.
Founded in 2000 and incorporated in Delaware, all of RED-C Networks’ 140 employees are located in its subsidiary operations based in Tel Aviv. As of March 31, 2012, RED-C had $3.2 million of cash and no debt.
Upon completion of the acquisition, which Finisar expects to close this month, RED-C will operate as a subsidiary of Finisar, with principal operations continuing at its current facility in Israel. Finisar expects the acquisition of RED-C to be slightly positive to non-GAAP earnings per share in its fiscal year ending April 30, 2013.
RED-C provides a variety of EDFA, Raman, and hybrid optical amplifiers.
"RED-C has been an innovator in optical amplification, which we view as an increasingly critical technology as networks get faster and more complex," said Eitan Gertel, Finisar's CEO. "As we have further penetrated the line card market with our differentiated WSS [wavelength-selective switch] technology, we see this acquisition as a tremendous opportunity to further innovate for our customers and advance our vertical integration strategy."
"We expect RED-C's high performance EDFAs and Raman amplifiers, currently deployed in optical networks around the globe, to continue to deliver strong growth for the RED-C business," said John Clark, Finisar's executive vice president, technology and global R&D. "Going forward, we anticipate additional growth opportunities for the novel Hybrid Raman EDFA platform.”
Clark based his optimistic outlook about the hybrid amplifier on its applicability to coherent-based high-speed networks. “We expect RED-C's Hybrid optical amplification platform to replace standard EDFAs for next-generation LH and ULH optical networks,” he said.
"We have been impressed with the RED-C amplifiers in terms of their performance and quality. For next-generation networks, there will be an increased need for advanced EDFA, Raman and Hybrid amplifier solutions that RED-C provides," said Transmode's VP R&D Mohamad Ferej. "With the addition of optical amplifiers from RED-C, Finisar is now offering a complete portfolio of optical components and sub-systems to support our mission to develop innovative network solutions."
