Intel acquires New Focus' network tunable laser technology

24 May 2002 -- Intel Corp has acqired the network tunable laser technology of San Jose-based New Focus Inc for USD50m.

May 27th, 2002

24 May 2002 -- Intel Corp has acqired the network tunable laser technology of San Jose-based New Focus Inc for USD50m.

New Focus has assigned intellectual property rights and will transfer the physical assets of the program. About 40 staff have joined Intel Communications Group in Newark, CA, USA. Combined with Intel's existing optical packaging, it will enable Intel to offer small-form-factor, low-cost tunable optical transceivers for DWDM equipment.

Intel has also licensed technology and will supply packaged products back to New Focus, which will integrate them into photonics subsystems and continue to supply products for test and measurement and other non-network applications (in the semiconductor, industrial, telecoms and medical/biotech markets). New Focus has previously focused on the still-depressed long-haul sector and says it does not want to undertake packaging itself.

"This acquisition augments the significant optical networking business that Intel has built over the past several years," said Gordon Hunter, vp, Intel Communications Group, and general manager, Optical Products Group. Together with the optical packaging technology from the acquisition of LightLogic for about USD400m in April 2001 (as well as the acquisitions of GIGA A/S, Cognet, nSerial, and Level One Communications) it positions Intel as a supplier of DWDM building blocks, he added.

In April New Focus closed a facility in China, sold its passive optical components product line to Finisar for USD12.75m, and laid off 350 staff. "This transaction lowers our financial risk and reduces the size of our quarterly operating loss while retaining the use of this important technology for targeted applications," said president and CEO Nic Pignati. "The cash generated provides funds to support our acquisition strategy".

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