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II-VI to Acquire optical switch firm CoAdna

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Combined portfolio for ROADM line cards will include fixed- and flex-band 1xN WSS, tunable mux/demux, dual-chip pump lasers, passive components, arrayed-EDFAs, optical channel monitors and optical time domain reflectometers

II"VI, an optical systems company, has announced its intent to acquire CoAdna, a Californian maker of wavelength selective switches (WSS) based on its patented LightFlow liquid crystal platform.

The cash transaction value is approximately $85 million at closing. The price includes the acquisition of CoAdna's approximately $40 million in cash.

CoAdna's WSS modules have a history of successful field deployments and over the years, have been integrated alongside II-VI's optical amplifiers, optical channel monitors and other II-VI components on ROADM line cards designed by II-VI, CoAdna and their customers.

The companies' combined portfolio of products for ROADM line cards will include fixed- and flex-band 1xN WSS, tunable mux/demux, dual-chip pump lasers, passive components, arrayed-EDFAs, high-resolution optical channel monitors and optical time domain reflectometers. II-VI also designs and manufactures fully-integrated ROADM line cards. CoAdna will contribute to the joint product portfolio its OvS platform that features a distributed cross connect architecture for data centre networking.

"CoAdna and II-VI have been great business partners for many years, leveraging each other's complementary products and technologies to serve the optical transport market," said Sunny Sun, president, Photonics Segment, II-VI Incorporated.

"We are eager to realise our synergies to grow the WSS business over our strong sales channels and shorten the time to market for our new products. With our manufacturing scale, unmatched vertical integration and broad product portfolio, we are well positioned for the growth in ROADM demand driven by metro network upgrades, new datacentre interconnect architectures and the emerging 5G wireless infrastructure."

The transaction is expected to close in the third calendar quarter of 2018 and is subject to the approval of CoAdna's shareholders, regulatory approvals and customary closing conditions.

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