29 September 2011

NeoPhotonics to acquire fellow photonic integrated circuit firm Santur

NeoPhotonics Corp of San Jose, CA, a vertically integrated designer and manufacturer of photonic integrated circuit (PIC)-based modules and subsystems for bandwidth-intensive, high-speed communications networks, has entered into a definitive agreement to acquire privately held firm Santur Corp of Fremont, CA, USA.

Founded in November 2000, Santur is a vertically integrated designer and manufacturer focused on commercializing indium phosphide (InP) PIC-based tunable laser array and packaging technologies for communications applications. Its technology includes established telecom designs offering approaches to wide tunability as well as high-speed transceivers. Products are designed to provide reduced size, power consumption and cost for a wide range of DWDM, coherent line-side and client-side networking applications in 10G, 40G and 100G networks.  Santur generated revenue of about $21m for the six months to end-June 2011.

NeoPhotonics has agreed to pay an estimated $39.2m in cash for Santur, after deductions for closing costs and other adjustments, plus up to $7.5m extra contingent on the financial performance of Santur products subsequent to closing of the transaction through the end of 2012.

“Santur has developed innovative indium phosphide (InP) based photonic integration products that are critical elements in 100G coherent transmitters and that complement the NeoPhotonics PIC-based 100G coherent receiver product line,” says NeoPhotonics’ chairman & CEO Tim Jenks. “By combining active InP PICs from Santur with our hybrid [silica-on-silicon] PICs, we can provide our customers with new products for 100G coherent systems that feature higher levels of integration, higher performance and greater functionality. Furthermore, Santur’s advanced tunable laser products also fit with our Speed and Agility product lines, enabling us to provide customers more complete solutions for reconfigurable networks,” he adds.

In addition, Santur is a provider of PIC-based 40 and 100G transceiver modules for client-side and data-center applications. NeoPhotonics recently entered this rapidly growing market segment with its first products. “By combining Santur’s products, roadmap and strong customer positions with the NeoPhotonics portfolio of products, vertically integrated and high-volume manufacturing capabilities, and complementary customer set, we intend to further develop our 100G coherent line-side products and rapidly establish NeoPhotonics as a major vendor of client-side components for the cloud,” says Jenks.

“Our InP PIC technologies form the foundation for our line of innovative products that we have successfully developed and sold to leading customers around the world,” says Santur’s president & CEO Paul Meissner. “The combination of our technology and products with complementary technology and products from NeoPhotonics can provide compelling value to our customers. This is a case of the sum being much greater than the parts, and we believe that NeoPhotonics represents an excellent strategic fit for Santur,” he adds.

Santur’s board of directors and stockholders have each approved the transaction, which is expected to close in fourth-quarter 2011.

Tags: Santur NeoPhotonics PICs

Visit: www.neophotonics.com

Visit: www.santurcorp.com