Lucent purchase

17 Jun 2002

Lucent Technologies has bought optical filter manufacturer Herrmann Technology of Dallas, Texas, for USD 438 million in stock.

Herrmann's filters are based on thin-films, and prevent interference between different wavelength channels in dense wave division multiplexing networks.

The company currently employs around 65 people at its Dallas headquarters. Its shareholders could receive a further USD 40 million windfall if Herrmann meets specific performance-related goals.

Company founder and president Bill Herrmann joins the optoelectronics division in Lucent's microelectronics group as director of optical thin-film manufacturing and advanced process development.

Lucent is believed to be planning to spin off its microelectronics unit in an effort to boost a flagging stock value, which has dropped 25% since the beginning of the year. Analysts have said that such a spin-off could raise USD 50 billion.

MH