COLORADO SPRINGS, Colo. — In a sign of the long-anticipated consolidation of the optical components industry, Hitachi spinoff Opnext Inc. has agreed to pay $172 million in a mix of cash and stock for StrataLight Communications Inc., a developer of electronic dispersion compensation subsystems for emerging 40-Gbit and 100-Gbit optical transmission systems.
Terms of the deal involved $30 million in cash and 26.55 million common shares of Opnext offered for all StrataLight assets. Based on Opnext's July 8 price of $5.35 per share, the deal is worth $172 million. StrataLight shareholders will own approximately 29 percent of the merged company.
While Opnext is a specialist in small form-factor optical modules used in 1G and 10G networks, such as XFP and SFP+, Stratalight (Los Gatos, Calif.) has focused on large line-side transport subsystems that occupy an entire line card or a standalone box. It works with OEM partners like Cisco to sell its transmission and EDC modules to service providers.
Harry Bosco, president and CEO of Opnext, predicted the acquisition will make the company the market leader in 40-Gbit transmission, and will drive the company toward 100-Gbit products as well.
At last winter's Optical Fibers in Communications Conference, financial analysts warned that a shakeout in optoelectronic component companies was long overdue. Since that time, transceiver leader Finisar Corp. announced a merger with Optium Corp.
