 |
 |
Date Announced: 09 May 2016
OXFORD, Mass.--(BUSINESS WIRE)--IPG Photonics Corporation (IPGP) today announced that it has entered into a definitive agreement to acquire Menara Networks, Inc., an innovator of enhanced optical transmission modules and systems, allowing IPG to offer more integrated telecom solutions and expanding IPG’s current telecom product offerings. Menara’s products are deployed in leading cable multi-system operators (MSOs), carriers and data centers in North America and in selected international networks.
The acquisition provides IPG entry into the growing optical pluggable systems market and leverages IPG’s international market access outside North America. The combination provides IPG with its own mixed signal ASIC proprietary designs that Menara is vertically integrating into advanced 100G/400G software-defined, flexible and configurable coherent DWDM transceiver modules. It expands IPG's telecom systems product offerings for 100G/400G markets with strong performance, cost advantaged, and accelerated time-to-market attributes. Major customers of Menara include a leading MSO, a large US data center operator and leading optical network system integrators, augmenting IPG’s list of communications network operators and service providers worldwide.
“The acquisition of Menara Networks is in line with our strategy to make bolt-on acquisitions that provide us with the talent, technology and products to enter large complementary markets,” said Dr. Valentin Gapontsev, IPG Photonics’ Chairman and CEO. “Since IPG was founded in the 1990’s, telecom products have been a staple offering for IPG, part of our DNA. This acquisition broadens and complements our telecommunications offerings and provides significant sales synergies. Together, we can offer our customers an expanded telecom technology platform with more integrated products with superior performance and economics. The acquisition also affords IPG a better position to capitalize on the robust growth of optical networking driven by video and broadband access.”
"The on-going shift to cloud based services and infrastructure has placed unprecedented strain on data centers and telecom/cable operators’ optical networks and presents a significant opportunity for Menara’s differentiated products,” comments Siraj Nour El-Ahmadi, Menara CEO, Chairman and Co-Founder. “We view the combination with IPG as a force multiplier to not only expand our market share vertically and geographically but just as importantly to bring about innovative and differentiated turn-key solutions that will effectively address the large and growing global DWDM market.”
IPG Photonics and Menara Networks had recently announced a partnership to provide an integrated solution for simplified repeater-less 100G DWDM transmission for metro and data center interconnection. Menara’s cost and foot-print-saving product suite of 10G and 100G WDM modules eliminate the need for high-priced transponder systems. Its suite of optical networking sub-systems is rapidly deployed, seamlessly integrated into current environments and requires minimal post-sales support.
Menara Networks had revenues of approximately $21 million in 2015 and is profitable. The cash purchase price is $46.8 million, subject to closing adjustments. Projected to close in the second quarter of 2016, the acquisition is expected to be accretive to IPG's earnings in 2018, but initially will have a dilutive effect of approximately $0.01 per share each quarter. It is immediately accretive excluding acquisition and retention-related expenses. The management team, including co-founders Siraj Nour El-Ahmadi and Salam Elahmadi, and other employees of Menara Networks are planning to remain with the combined company.
Source: IPG Photonics
E-mail: via web site
Web Site: www.ipgphotonics.com
| © 2024 SPIE Europe |
|
