Bookham acquires optical amplifier firm Onetta
UK-based chip and subsystem manufacturer Bookham Technology is to acquire Onetta, a US company specializing in optical amplifier modules for telecommunications networks.
Based in Sunnyvale, CA, Onetta makes “intelligent” erbium-doped fiber amplifiers (EDFAs), which boost optical signals in long-haul links. EDFAs use 980nm diode lasers such as those made at Bookham’s chip manufacturing plant in Zurich, Switzerland, to amplify optical signals.
Valued at £13 million ($23.3 million), the all-share deal sees Bookham acquire a business that had a revenue of $3.3 million in the first quarter of 2004. Onetta made a loss of $2.1 million in the period.
Onetta had raised $68 million in venture capital during the telecommunications boom of 2000.
Bookham, which already has its own EDFA products, said that Onetta would bring additional penetration to top-tier customers in the optical networking segment. The acquisition will also enable further vertical integration within Bookham, providing another outlet for its semiconductor lasers.
Bookham CEO Giorgio Anania appeared undeterred by Onetta’s recent loss-making performance: “We expect Onetta, after synergies are considered, to become cash-generating before the end of 2004,” Anania said.
• A Bookham spokesperson confirmed to Compoundsemiconductor.net that around 600 jobs would be lost at its packaging plant in Paignton, UK. The transfer of the packaging facility to China has been on the cards since Bookham acquired a facility in Shenzhen when it bought New Focus earlier this year.
The move is part of Bookham’s plan to cut costs by 25% across the company in an effort to reduce cash-burn.
Around 400 jobs, many in research and development, will remain at the former Nortel Networks facility, which Bookham says will remain the company’s packaging “center of excellence”.
