C-COR announces agreement to purchase Optinel Systems

Aug. 30, 2004
August 30, 2004 State College, PA--C-COR, a global provider of broadband communications products, today announced that it has entered into an agreement to acquire Optinel Systems, a privately held provider of optical Ethernet transport equipment, for an initial cash payment of approximately $9.5 million and the assumption of certain liabilities.

August 30, 2004 State College, PA--C-COR, a global provider of broadband communications products, today announced that it has entered into an agreement to acquire Optinel Systems (Elkridge, MA), a privately held provider of optical Ethernet transport equipment, for an initial cash payment of approximately $9.5 million and the assumption of certain liabilities.

The purchase agreement also provides for the payment of an additional $6 million in contingent cash consideration if certain sales objectives are achieved in the thirteen month period following closing. The purchase transaction is subject to customary closing conditions and is expected to be completed in the first quarter of C-COR's fiscal year 2005.

With the completion of the purchase, Optinel will become part of C-COR's Broadband Communications Products business segment. C-COR anticipates that, in the twelve months following closing, the Optinel acquisition would add approximately $7 million in net sales and contribute to earnings after integration is completed, which is expected by the end of C-COR's fiscal year 2005.

Optinel's flagship PLEXiS platform combines Gigabit Ethernet transport modules with DWDM and CWDM hardware to provide cable operators with a server-to-hub transport solution for services such as VOD, HDTV, broadcast video, high-speed Internet, and cable telephony. Optinel's bandwidth-optimizing technology enables the network operator to build high capacity fiber-optic networks capable of simultaneously transmitting on one optical wavelength video, data, and voice traffic in native formats over long distances. This approach provides powerful advantages in flexibility, network performance, cost efficiencies, and revenue opportunities over traditional options of dedicating one optical wavelength to each data protocol, or converting all protocols into a digital baseband format and then restoring them to the native format at their destination.

Available with multiple transceiver, transmitter and receiver formats, the PLEXiS array of products provides 1-, 2.5- or 10 Gbits/sec of unidirectional or bidirectional capacity per wavelength, allowing an optimized balance between high network capacity and granular scalability. The system supports a wide variety of network configurations ranging from simple, point-to-point links to fully protected multi-service rings or star topologies.

Enhancing its base system that consists of a centralized distribution unit at a regional headend, network interface units at the headends, and an amplifier unit set between them, Optinel recently announced its PLEXiS BxE solution that enables cable operators to cost effectively offer high bandwidth, direct-connect services to small and medium-sized businesses and includes a new line of Customer Premise Equipment products. The BxE line is currently in field trials with multiple system operators.

Commenting on the acquisition, David Woodle, chairman and chief executive of C-COR, stated, "Optinel's technology fills out our next-generation packet-based, optical transport solution and allows us the flexibility to meet the individualized business needs of our customers. With a comprehensive offering, we can now provide our MPS Platform with its 10 Gig-E, bi-directional ring approach or Optinel's PLEXiS 10 GigE point-to-point approach as a merged architecture solution or a single architecture solution that can be upgraded to a merged solution. In addition, Optinel brings to C-COR a product line that enables our customers to address the burgeoning business services market with rapid deployment and minimal capital investment."

Sandeep T. Vohra, co-founder, president, and chief technology officer of Optinel, also stated, "Combining C-COR and Optinel technology will provide cable operators an unmatched array of optical network options that are rapidly deployable, optimize bandwidth capacity, provide scalability, and reduce costs dramatically. Equally important, our customers will benefit from our combined engineering expertise and experience as the industry moves into the all-digital, on-demand networks of the future."

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