LONDON -- French MEMS specialist Memscap SA announced Thursday (28th August 2003) it is buying, for an undisclosed sum, GalayOr Inc., a closely held, VC funded company developing low-cost mass-producible and dynamically reconfigurable silicon based devices for optical communications.
Linked to the acquisition, Memscap plans to raise a further $3.5 million from its original investors, including $1.5 million in the short term.
GalayOr ('Light Wave' in Hebrew) has premises in San Jose, California and Tel Aviv, Israel. It employs 16 people and its technology is based on research conducted at Tel Aviv University.
The company has joint development agreements with JDS Uniphase and Analog Devices. Its cash burn is very low and has net cash of $1.5 million, increasing Memscap's cash position.
In June, GalayOr and Memscap joined forces to develop a new generation of optical products, starting with an integrated closed-loop digital variable optical attentuator (VOA). The DVOA is expected to be available for sampling during the fourth quarter of 2003.
The DVOA will first undergo a last R&D process at Memscap's facility in Bernin, France, where it will be produced, packaged, tested, and qualified using standard VLSI processes and packaging. Commercialization, managed by Memscap, will begin in high volume during the second phase that is expected to start in 2004.
The DVOA was developed together with Analog Devices, which developed the electronic control circuitry that includes high-precision log amplifiers. It integrates the functionalities of several different optical and electronic discrete components into a single module measuring only 42-mm x 17-mm x 10-mm, and allows on-board microprocessor control, alarm reporting, on-board input/output optical power monitoring, automatic calibration, optical automatic power control (OAPC) with continuous power adjustment to environmental changes and aging.
"Memscap has established itself as the pre-eminent platform to capture the leadership of the MEMS market worldwide. We share the same vision and the same values. Together, we will bring to the market the world's best MEMS-based optical products," said Uri Geiger, GalayOr chief executive officer.
Following the acquisition, Uri Geiger, CEO of GalayOr, will become the president and general manager of Memscap's Optical Business Unit. The acquisition is subject to customary approvals and review including the approval of Memscap shareholders, review of the transaction by an independent appraiser and approval of the stock market regulatory authorities.
Memscap is currently engaged in a major rationalization and cost reduction program,that will have show its full impact on figures starting from end of July 2003.