Nortel Networks Corporation has announced a definitive agreement whereby it will acquire JDS Uniphase`s Switzerland-based subsidiary, an industry leader in the design and high-volume manufacture of strategic 980 nanometer pump-laser chips, as well as its related assets in Poughkeepsie, New York for up to US$3-billion.
"This acquisition will enable us to reach our goal of pioneering technology breakthroughs in the high performance optical components market," said Malcolm Bayes, VP, Nortel Networks sub-Saharan Africa. "This is where the next opportunity is: in the integration, manufacturing and packaging of components into high-performance modules for the development of a high-performance Optical Internet."
The Zurich-based subsidiary currently supplies 980 nanometer pump-laser chips to some of the world`s leading optical component manufacturers. Upon completion of the acquisition, Nortel Networks fully expects to continue and enhance the relationships that this business has with these valuable customers.
"The acquisition will allow Nortel Networks to advance the next generation of optical modules and strengthen our supply chain as we move to unleash the full potential of our high-performance optical component solutions business," said Bayes.
Technical Operations Officer at Nortel Networks, Sirshem Moodley explained: "The 980 nanometer pump-laser chips are essential to creating the all-optical Internet. A 980 nanometer pump-laser chip provides the energy source by which light is strengthened as it is transmitted on fiber between cities or buildings. This means that Nortel Networks can accelerate its ability to integrate this technology and associated intellectual property into its high-value optical amplifier modules, which are used by both the company and its customers to boost and amplify light in dense wave division multiplexing (DWDM) networks.
"This acquisition will complement Nortel Networks` leadership in the development and integration of discrete components into multi-functional components and high-performance modules, including the strategic integration of microelectronics and optical components, and sets the standard by reducing their size and power consumption.
"JDS Uniphase`s Zurich-based subsidiary will be a valuable and very complementary addition to Nortel Networks current portfolio of optical components and modules," said Stephen Reilly, general manager of the Zurich-based subsidiary. "We have a highly-talented group of engineers and manufacturing employees here in Zurich and in Poughkeepsie, New York. We are pioneers in this field and are excited about joining forces with the industry leader in optical networking."
Nortel Networks High-Performance Optical Component Solutions business is one of the largest and fastest growing optical component and module businesses globally. The business is a world leader in the design, development and manufacture of high-value modules for the Optical Internet, including those for 10 and 40 gigabits per second systems. It has established industry leadership and competitive differentiation by translating the art of invention and design into volume manufacturing of components and modules that are at the heart of the high-performance Internet. It has estimated pro forma 2000 revenues of US$2.425 billion based on market prices and approximately 8,900 employees and contractors located primarily in Harlow and Paignton, United Kingdom; Ottawa, Ontario; Boston, Mass. and Raleigh, NC; and Sydney, Australia.
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