Macom to buy optical subassemblies company
Macom Technology has entered into an agreement to acquire FiBest, a Japan-based merchant market component supplier of optical sub assemblies, for approximately $60 million in cash, or 2.4 times trailing twelve months revenue.
"The FiBest acquisition augments Macom's preeminent position in optical networking components, adding high-performance packaging capability. This will enable us to deliver more refined and validated component solutions to our transceiver customers," said John Croteau, president and CEO of Macom.
"The quality of the optical sub assembly is a major factor in achieving the performance, power efficiency and cost targets necessary for 100G in datacentres - and becomes mission critical at 200G and 400G data rates. Adding FiBest will significantly expand Macom's addressable market with high growth potential for 100G in datacentres, as we anticipate an inflection point in demand in 2017."
Macom expects to fund the purchase price of the acquisition with available cash. Closing is expected to occur during the company's fiscal first quarter of 2016.