15 August 2022
Lumentum acquires IPG Photonics’ telecom transmission product lines
Lumentum Holdings Inc of San Jose, CA, USA (which designs and makes optical and photonic products for optical networks and lasers for industrial and consumer markets) has acquired the telecom transmission product lines (optical transceivers and coherent components) of IPG Photonics Corp of Oxford, MA, USA (which makes high-power fiber-lasers and amplifiers primarily for materials processing and other diverse applications) in an all-cash transaction. The divested activities include the former Menara Networks and a subsidiary in Brazil.
“While we have made good progress in developing fundamental technologies in our telecom transmission business, our ability to scale these product lines would require a step-up in investment that we believe would be better spent on our core materials processing and adjacent markets,” says IPG Photonics’ CEO Dr Eugene Scherbakov. “After an in-depth review, we have determined that participation in the broader telecom market is non-core to IPG’s strategy. Our strategy is to remain focused on revenue diversification and growth opportunities in markets where we can increase our value proposition to customers by delivering advanced laser processing and technology solutions. We are exploring substantial new markets and applications where fiber lasers are replacing existing laser and non-laser technologies by improving efficiency, productivity, or enabling technological breakthroughs for our customers,” he adds.
“I am very excited to add such highly complementary and differentiated transceiver product lines and ASIC capabilities, which help to expand our addressable market and augment our technology capabilities,” says Dr Beck Mason, senior VP & general manager, Telecom Transmission at Lumentum. “This acquisition brings a talented team developing digital communications ASICs, including coherent DSPs, which complements our silicon and indium phosphide photonic integrated circuit (PIC) capabilities and creates opportunities for increased vertical integration in future optical transmission modules,” he adds. “Increasingly, customers in the cable MSO and wireless network operator space are turning to wavelength-tunable pluggable transceivers to help expand their network capacity and this acquisition brings highly synergistic product lines addressing this rapidly growing opportunity.”
There is no impact to Lumentum’s fiscal fourth-quarter 2022 due to this transaction, and the terms of the transaction were not disclosed.