SAN JOSE, Calif. The planned merger of two optical component makers, Uniphase Corp. and JDS Fitel Inc. (Nepean, Ontario), aims to create a supplier of integrated optical modules for wavelength-division multiplexing (WDM) and fibre-optic-based cable TV networks. The merger, announced Thursday (Jan. 28), is structured as a stock swap of the two companies with a combined market capitalization of $6.1 billion.
"We are creating a proverbial one-stop shopping center for optical modules that should help speed time-to-market for WDM and CATV systems," said Fred Leonberger, chief technology officer at Uniphase (San Jose, Calif.). "Uniphase primarily makes active optical component lasers and modulators, and JDS makes optical passives and filters. Now OEMs will be able to get more module-like optical subassemblies."
Leonberger would not specify any product plans the combined companies, but said "we have a lot of ideas" for modules aimed at the companies' primary market of WDM and fibre-optic CATV transmission.
Under terms of the merger agreement signed by both companies, Uniphase chairman and chief executive officer Ken Kalkhoven will become the co-chairman and chief executive of the new company, which will be named JDS Uniphase Corp. Jozef Straus, president and chief executive officer of JDS Fitel, will become cochairman, president and chief operating officer of the merged company. Shareholder and regulatory approval of the deal was still pending at post time.
Uniphase supplies a range of optical transmitters, receivers and amplifiers, including fibre Bragg gratings as well as a line of industrial lasers. JDS makes a line of passive optical components, optical switches and isolators. Both companies reported most recent quaterly revenues of about $60 million each. The deal is expected to take at least two months to close.