InP-based photonic integration technology and optical module supplier EFFECT Photonics will jump into the coherent transmission game via an agreement to acquire the coherent optical digital signal processing (DSP) and forward error correction (FEC) technology and complementary engineering team from Viasat Inc. (NASDAQ: VSAT). Viasat also participated in a new $20 million tranche of Series C funding. The deal is expected to close, “in a few weeks,” according to EFFECT Photonics sources.
In addition to enabling its own coherent module aspirations, EFFECT Photonics will offer the DSP technology, coupled with its photonic integration expertise, on the merchant market. The goal, according to James Regan, the company’s CEO, is to enable the application of coherent transmission technology to new application areas, such as inside the data enter and in access networks. The DSP and FEC assets are mature enough to support 800G, Regan said.
The engineering team numbers approximately 20 people, who will continue to work out of their current facilities in Cleveland, Regan said. As part of the transaction, Viasat will receive a seat on EFFECT Photonics’ supervisory board and hold a minority interest in its new partener. Viasat will retain some engineers with coherent transmission expertise for its own needs; Regan added that the two companies will collaborate on coherent photonics for space-based applications.
“Given the trend of the fiber-optic communications industry towards consolidation to provide vertically integrated end-to-end solutions, we believe that combining Viasat’s assets and capabilities with the unique integrated photonics capabilities of EFFECT Photonics will create substantially more market opportunities and better products,” commented Russell Fuerst, business area leader and vice president, Viasat. “By investing in this Netherlands-headquartered company, we will also further expand our presence in Europe and be able to partner with EFFECT to bring state-of-the-art integrated photonics to Viasat’s own customers.”
Partnership with Jabil
Shortly before EFFECT Photonics announced the agreement with Viasat, the company and Jabil Photonics revealed they will collaborate on the development of QSFP-DD coherent modules. A source at Jabil said on the OFC 2022 show floor that the two companies had not yet discussed using EFFECT Photonics’ upcoming DSP capabilities as part of the co-development. EFFECT’s expertise in photonic integrated circuits was the immediate catalyst for the tie-up, the Jabil representative said.
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