WAYNE, N.J. Tellabs has purchased passive optical networking (PON) equipment developer Vinci Systems for $52.5 million, a move that will allow Tellabs to deliver an end-to-end PON solution to service providers.
Tellabs made its entry into the emerging PON sector in May when the company announced plans to acquire rival AFC. After finally closing the $1.5 billion AFC acquisition in early December, Tellabs found itself with a line of optical line terminals [OLTs] (central office equipment) for the rollout of BPON services.
Unlike AFC, Vinci has spent its time on the client side, developing optical network terminals (ONTs) for deployment at the customer premise. By reeling in this product portfolio, Tellabs can now deliver an end-to-end product offering to service providers.
Vinci was formed in 2002 and is based in Vienna, Va. Under the acquisition, Tellabs will acquire the company will pay up to $52.5 million in cash. Tellabs will also provide restricted stock to Vinci investors.