JDSU's (NASDAQ:JDSU) board of directors has unanimously approved a plan to separate JDSU into two publicly traded companies, one focused on optics and the other on network and service enablement.
The optical components and commercial lasers company ("CCOP") will consist of JDSU's current Communications and Commercial Optical Products segment. The network and service enablement company ("NSE") will consist of JDSU's current Network Enablement, Service Enablement and Optical Security and Performance Products (OSP) segments. The NSE company will primarily focus its investments in higher growth markets, particularly software supporting virtualized and software-defined networks.
The separation is expected to occur through a tax-free pro rata spinoff of CCOP to JDSU shareholders. The transaction is expected to be complete by the third quarter of 2015. Brand identities for each business will be announced later.