Light Reading

Alcatel-Lucent Buys Optical Specialist

Ray Le Maistre
1/10/2013
50%
50%

Alcatel-Lucent has acquired Wavelength Selective Switch (WSS) specialist Capella Photonics Inc. for an undisclosed sum.

AlcaLu tells Light Reading the acquisition was made "late last year … to add to our overall optical capabilities." San Jose, Ca.-based Capella makes WSS products for use in ROADMs (reconfigurable optical add/drop multiplexers) and optical cross connects. (See Capella Adds 1x20 WSS.)

The vendor giant isn't revealing any more than that, though, saying only that it was "a relatively small acquisition" and that news of the deal wasn't broadcast as the purchase price fell below (an unspecified) "threshold for public disclosure."

The deal would have been struck just as AlcaLu was coming to terms with significant job cuts and arranging a financial lifeline. (See Alcatel-Lucent Secures €1.6B Lifeline and AlcaLu Job Cuts to Hit 5,500.)

Capella, which was founded in 2000, raised more than $90 million in equity and debt financing between 2001 and 2011. Its most recent investment was a $20 million round from a group of investors including Black Diamond Ventures and SingTel Innov8, the corporate venture arm of Singapore Telecommunications Ltd. (SingTel). (See Capella Raises $20M.)

The acquisition leaves CoAdna Photonics Inc. as the last independent WSS specialist of any note. (See Edge ROADM Specialist Gets Bought.)

— Ray Le Maistre, International Managing Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Balet
50%
50%
Balet,
User Rank: Light Beer
1/11/2013 | 10:16:53 PM
re: Alcatel-Lucent Buys Optical Specialist
IMHO, Capella have been too much driven by VCs and not-átechnologists-áor marketeers. I know a few people who had tried it there. While technology is cool, S&M and procurement organizations seem to be weak. Hires/Fires were sometimes based on VCs "old fashion" views - big names, from big companies "increasing the sale value of the company" and not by what people could really do. Larry is a very smart businessman/technologist, but he was not always the last saying in the company.
Very common mistake in start-up lives.
Another WSS-ávendor, Nistica is a good example of "scientist-driven" business.
Finisar/Optium have done quite well having picked up smart Australians. JDSU is legacy, very rigid corporate limited organization not open to change. Oclaro has been trying hard to integrate Xtelus. CoAdna have done well focusing on low cost Chinese-ásuppliers, but sometimes lack-áinnovation, IMHO.
The biggest problem right now is the market itself, so shrunk and competitive that WSS vendors are forced to sacrifice product performance, margins and limit innovations to survive price pressure from "Huaweis" of this world.
I wonder how this-áacquisition-áwill affect "big boys" business at AlcaLu.
bandaoti
50%
50%
bandaoti,
User Rank: Light Beer
1/11/2013 | 1:11:50 AM
re: Alcatel-Lucent Buys Optical Specialist
Below is market share, JDSU(38%)pÇüFinisar(34%)pÇüCoAdna(18%). And NisticapÇüOclaropÇüOplink and so on. I don't want to comment Capella market share, i just want to say, lower market share tell its price and performance. I doubt this buying.
bandaoti
50%
50%
bandaoti,
User Rank: Light Beer
1/11/2013 | 12:48:32 AM
re: Alcatel-Lucent Buys Optical Specialist
Why ALU buy this company since ALU itself is struggling to survival? Is this buying take any benifit to ALU?
redface
50%
50%
redface,
User Rank: Light Beer
1/10/2013 | 8:26:31 PM
re: Alcatel-Lucent Buys Optical Specialist
Capella is known for two things: 1) number of granted patents on WSS. 2) number of financing rounds. -áJust does not have the customer wins to show for it. -áNow it finally ends its struggle and gets bought for peanuts, probably for its patents. -á

Anyone knows why Capella could not make it? -á
Craig Matsumoto
50%
50%
Craig Matsumoto,
User Rank: Light Sabre
1/10/2013 | 6:53:16 PM
re: Alcatel-Lucent Buys Optical Specialist
Thanks to Seeking Alpha for the link: http://seekingalpha.com/curren...
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Easing the Tech Pains for the Homeless
Carol Wilson, Editor-at-large, 7/28/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?