Enablence Acquires Wave7

Enablence Technologies Inc. (Toronto: ENA) has announced that it will be acquiring Wave7 Optics Inc. for $10.5 million and 2,078,385 shares of its own common stock. The total transaction values Wave7 at about $13.9 million. The transaction is expected to close before May 15, 2008.

In broadband access, keeping costs down is paramount, and Wave7 says that's a big motivator for this marriage. “The optical block represents the most significant cost contributor to the ONT and the Enablence PLC technology solution offers a substantial opportunity for cost reduction,” says Wave7 CTO Jim Farmer in a statement.

Enablence manufactures planar lightwave circuit (PLC)-based components such as transceivers for broadband access system vendors. While integrating its products directly into Wave7’s access platform will bring natural cost reductions, Enablence says it will continue to distribute its transceivers to other vendors as well.

Wave7’s access products include support for gigabit Ethernet passive optical network (GE-PON), gigabit passive optical network (GPON), and point-to-point Ethernet systems. They are all marketed under its brand name of Trident 7. (See Wave7 Adds Compact OLT and Wave7 Adds GPON.) The company claims to have a customer base of more than 100 fiber-to-the-home (FTTH) service providers throughout the world.

Shares of Enablence have dropped $0.07 (4.14%) to $1.62 in midday trading.

— Raymond McConville, Reporter, Light Reading

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Frank123 1/24/2016 | 2:53:54 PM
New orders coming?? Could it be that Enablence will make some news before OFC. I know Evan Chen and he is a good guy that has a plan for new product to serve the LR market.  The Enableance, Hybird PLC is a great option for compact optoelectronic components for a high volume market.   If they have the volume manufcturing figured out for 80G and above this could start to generate some nice revenues for them.
Mark Sebastyn 12/5/2012 | 3:43:28 PM
re: Enablence Acquires Wave7 And this makes sense because...
deauxfaux 12/5/2012 | 3:43:27 PM
re: Enablence Acquires Wave7 Great guys, a lot of hard work, neat technology, a lot of happy customers in a very tough segment.

Best wishes and good luck guys

deauxfaux 12/5/2012 | 3:43:27 PM
re: Enablence Acquires Wave7 Given the number of shops that they've been laughed out of, I suppose that this was Enablence's only recourse to get a customer.

Lets see now.....fabs in Fremont and Geneva with a HQ in Ottawa and a huge number of people in Alpharetta....Yep....sounds like a "winning" strategy to be the low cost producer of components and compete against the chinese.

timbuktu 12/5/2012 | 3:43:22 PM
re: Enablence Acquires Wave7 Question #1
Is deauxfaux's remark viable, or is the 'vertical integration strategy' actually a strategically smart move.

Question #2
What is Wave7's underlying motivator behind this move?

ymchu 12/5/2012 | 3:43:21 PM
re: Enablence Acquires Wave7 I don't think there is a chance for them to compete not to say low cost chinese xceiver. Maybe it's a preparation for another sale.

I think W7 can reverse take over, they know the market better.
Physical_Layer 12/5/2012 | 3:43:20 PM
re: Enablence Acquires Wave7 1) Will yesterday's potential customers of Enablence now look at them as a competitor on the PON equipment market and not be as interested in them?

2) Why wouldn't they finish vertically integrating at the components level first? They bought receivers and a fab, what about lasers?
deauxfaux 12/5/2012 | 3:43:19 PM
re: Enablence Acquires Wave7 A couple of thoughts.

No OEM will touch Enablence's parts with a 10 foot pole now. I can just hear the VP of Sales at Enablence now; "just go ahead and sign the NDA...we won't tell the Alpharetta guys about what you are doing, what deals you are winning...etc. etc.

With 2 fabs, an Ottawa HQ and now the Alpharetta guys (the only group worth anything) now Enablence will REALLY start the cash burn

deauxfaux 12/5/2012 | 3:43:17 PM
re: Enablence Acquires Wave7 There are no advantages for Wave7; their VCs wanted out and decided to sell.
timbuktu 12/5/2012 | 3:43:17 PM
re: Enablence Acquires Wave7 I wonder where the advantages are obtained for Wave7? They should have teamed up with a telco/IP vendor with a complementary product portfolio and presence in significant markets. I assume that Cisco would have been a likely candidate, but then again this would destroy their anti-PON story.

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