IPG Photonics sells telecom transmission line to Lumentum

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Lumentum Holdings has acquired IPG Photonics' telecom transmission product lines, including optical transceivers and coherent components, in an all-cash transaction.

The acquired activities include the former Menara Networks and a subsidiary in Brazil. The telecoms team will be employed by Lumentum.

Beck Mason, SVP and general manager, telecom transmission at Lumentum explains: ‘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. This acquisition brings a talented team developing digital communications ASICs, including coherent DSPs, which complements our silicon and indium phosphide photonic integrated circuit capabilities and creates opportunities for increased vertical integration in future optical transmission modules. 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.’

Eugene Scherbakov, CEO at IPG Photonics adds: ‘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. 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 would like to thank our telecom transmission employees for their contributions and wish them success with Lumentum.’

The company also recently completed its acquisition of NeoPhotonics.

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