Optillion Receives Second-Round Investment of $53 Million

Source: Optillion

Crescendo Ventures, Cisco Systems and Investor AB come in as new shareholders

Stockholm, Sweden. Optillion, a fibre optics transceiver company, today announced that it has concluded a $ 53 million round of equity financing in what is one of the autumn’s largest private placements in Sweden. Optillion raised $ 53 million through a new share issue in a second round of financing. Crescendo Ventures led the $ 53 million equity round, which also included Cisco Systems and Investor AB (via Investor Growth Capital, its venture capital company). Optillion’s existing major investor, ITACT, also participated in the second round. Optillion has gathered world-leading expertise for the development and production of optical transceivers that are expected to significantly increase capacity in future broadband networks.

The continuous increase in Internet traffic is placing even greater demands on broadband capacity. A fibre optic transceiver is a vital link in the data communication chain – consisting of a small optical transmitter and receiver located in a computer, switch, or router. Optillion’s first products will be transceivers which operate at 10 times the speed of today’s fastest Ethernet transceivers for data communication.

The new additional financing will enable Optillion to accelerate the development of its transceivers, build its own manufacturing plant, and open an office in the US.

“It is reassuring to see that investors have confidence in our business concept and expertise - despite the current climate of the capital market,” says Patrik Evaldsson, CEO of Optillion. “Many major investors have shown interest, in this phase, we have chosen to proceed with these four companies, which make up a perfect team for Optillion. We have the right mix of financial and industrial shareholders. It is important to have partners who can not only provide capital but also expertise within the specific field.”

“Our investment in Optillion is fully in line with our strategy to inject capital and know-how into potential, world-leading technology companies,” says Roeland Boonstoppel, General Partner at Crescendo Ventures. “Optillion’s unique business model, unrivalled technical expertise, and strong management team provide excellent conditions to become the market leader in the fast growing global high-speed optical transceiver marketplace.

“According to the Gartner Group, the total market for the next generation Ethernet (10 Gbps) is expected to reach SEK 30-40 billion within four years,” says Klas Hillström at Investor Growth Capital. “High-speed optical transceivers, such as those developed by Optillion, will be an important part of this market.”

Contact: Patrik Evaldsson, CEO, Optillion, +46 8-477 41 61 or +46 701-81 52 11 Heléne Wolpher, VP Corporate Communications, Optillion, +46 8-477 41 60 or +46 701-81 52 23 Klas Hillström, Director, Investor, +46 8-463 38 41 Roeland Boonstoppel, General Partner, Crescendo Ventures, +44 20 75 29 63 00 Jan Nilsson, Chairman, Optillion and CEO, ITACT, +46 46 32 88 60

ABOUT OPTILLION Optillion is a high-tech company that operates in the optic component and subsystem market. The business concept of Optillion is to develop, manufacture, and sell transceivers which will increase capacity in fibre optic networks. Transmission capacity in Optillion’s first transceiver will be 10 Gbps (Gigabit Ethernet) and future products will enable even higher speeds.

Optillion was founded in December 1999 by Christer Svensson, Lars Thylén, and Jan G. Nilsson. The three company founders provide a unique base of expertise and experience to enable Optillion to develop successfully into a global market player. Svensson is a professor of electronic components at the University of Linköping; Thylén, a professor in photonics at the Royal Institute of Technology in Stockholm; while Nilsson is a successful entrepreneur. In a very short time they have put together a very strong team of experts within all the four fields which are vital for success. Today, Optillion has experts in high-speed electronics, high-speed optics, automated manufacturing, and encasing. The company currently employs 62 people of whom 45 are highly qualified engineers with M.Sc. degrees, and 19 of these also have Ph.D. degrees in electronics or photonics.

Optillion is in the process of building its own manufacturing operation in order to be able to manufacture high-performance transceivers in high volumes for 10 Gbps Ethernet. The new production facility, located in Stockholm, will manufacture optochips and encase and mount the transceivers. When the factory is finished in mid-2001, it will constitute the hub of Optillion’s business operation.