Emcore buys JDSU's cable TV business unit
III-V component maker Emcore has acquired the analog cable TV (CATV) and RF-over-fiber business units of JDS Uniphase (JDSU) for $1.5 million.
In addition to the closing price, Emcore has agreed to buy $2.8 million-3.8 million worth of components from JDSU over the next two years. The Somerset, NJ, firm will also pay JDSU a royalty on licensed intellectual property.
The CATV business brought in around $20 million in revenue over the past year, and Emcore expects its own sales figures to be boosted by $10 million-15 million this year as a result of the acquisition.
Product lines in the transaction include: 1550 nm broadcast transmitters, which link cable networks and hubs; 1310 nm transmitters linking cable hubs and nodes; 1550 nm dense wavelength division multiplexed (DWDM) transmitters; analog receivers; amplifiers for fiber-to-the-premises applications; and RF-over-fiber specialty products for defense and satellite communications.
Under the terms of the deal, the two companies have also agreed a preferred supplier arrangement for certain (undisclosed) optical components.
Emcore says that it will now set up a design center in northern Pennsylvania, close to CATV product customers. JDSU employees acquired through the transaction will continue in product design, marketing, sales and application engineering functions.
Hong Hou, VP and general manager of Emcore's Ortel division, said: "Emcore now offers complete product solutions to OEMs in this market."
Continuing to focus down on its core business activities, JDSU has also completed the sale of three of its manufacturing sites to Thailand-based Fabrinet.
Fabrinet now owns the former JDSU sites in Mountain Lakes and Ewing, both in New Jersey, as well as the crystal manufacturing operation in Fuzhou, China.
