Alcatel makes a move into Scotland

17 Jun 2002

Alcatel Optronics buys Scotland-based Kymata in a multimillion-dollar share swap.

France-based optics manufacturer Alcatel Optronics has bought the Scottish optical-component maker Kymata in a share swap valued at Euro 134 million (USD 117 million). The deal is expected to close by the end of August.

"[The acquisition] will allow us to gain at least two years in time-to-market for planar products," said Alcatel Optronics's chief executive, Jean-Christophe Giroux. "It is a crucial step in our strategy to implement active/passive integration, which we consider to be key for the future."

Kymata focuses on the mass production of arrayed waveguide grating technology for dense-wavelength division-multiplexing signals in optical communications. Mike Hickey, chief executive of Kymata, believes that the deal will boost Scotland's position in the global optics market-place, while allowing Kymata to "do what they do, but better."

"The deal provides our business with the resources and scale needed to achieve market leadership," said Hickey. "It provides Scotland with a world-class research, development and manufacturing facility that strengthens [the country's] standing in the global optoelectronic market."

Kymata currently employs 400 staff across Scotland and the Netherlands. Alcatel intends to maintain Kymata's manufacturing operations across these two regions, and merge sales and marketing.