June 7, 2005 San Jose, CA -- JDS Uniphase (JDSU) has acquired Photonic Power Systems, a provider of photonic power for the delivery of power over fiber. JDSU says the acquisition provides them with an innovative system and technology for remote powering in commercial applications.
Photonic Power Systems is a fabless semiconductor company and provider of GaAs and InP-based devices for delivering electrical power over fiber for electronic applications. The company says it combines its laser and fiber-optic expertise with photovoltaic power converter design capabilities to offer a cost-competitive power delivery system for driving sensors, gauges, actuators, low power communications devices, nanotechnology, and micro-electromechanical systems (MEMS). The company says the isolated nature of photonic power delivery makes it ideal for use in applications involving high levels of RF, EMI, and voltage, including lightning.
"JDS Uniphase is acquiring a potentially disruptive technology," observes Vincent Lui, an analyst with IDC, an industry research firm. "The technology is not incremental; it is a completely novel approach to power delivery in specialty applications. Moreover, Photonic Power Systems has a proven history, strong intellectual property in the area of fiber-optic photonic power conversion, and core technology that aligns well with JDS Uniphase's technology base."
JDSU says photonic power can replace copper and batteries for remote sensors, coaxial cable in wireless applications, and oil or gas-filled measurement transformers in high voltage applications. The company expects to leverage Photonic Power Systems' technology across multiple markets, including medical, wireless communications, electrical power, industrial sensor, and aerospace applications. More than 10,000 units of the photonic power technology have been deployed to date, serving more than 50 customers, according to a press release.
"We're excited about the expanded market opportunities created by this acquisition," comments David Gudmundson, vice president of corporate development for JDSU. "In the long run, we believe customers will include an attractive mix of existing JDS Uniphase communications customers in established sectors such as wireless, [as well as] new, diverse industrial customers in applications like remote power and sensing."
"Joining forces with JDS Uniphase provides us with a platform upon which to further build this technology, and the opportunity to explore new markets and applications," adds Dr. Jan-Gustav Werthen, founder and CEO of Photonic Power Systems. "In addition to access to its optical technology, JDS Uniphase can help us scale via a strong, well-established manufacturing capability and sales channel."
Photonic Power Systems' eight employees, currently located in Cupertino, California, will transition to JDSU's corporate offices in San Jose. The group, led by Dr. Werthen, will form the nucleus of JDSU's Photonic Power business unit, according to the release.
The acquisition, which is immediately EBITDA break-even on a non-GAAP basis, closed on May 26. Terms were not disclosed.