Bookham Buys Onetta 602711

Agrees to purchase Onetta, a leading provider of optical amplifier modules and subsystems

May 24, 2004

2 Min Read

OXFORDSHIRE, U.K. -- Bookham Technology plc ("Bookham") (LSE:BHM) (Nasdaq:BKHM) today announced that it has entered into an agreement under which it will acquire Onetta, Inc. ("Onetta"), a leading provider of optical amplifier modules and subsystems for communications networks, based in Sunnyvale, California.

Onetta designs and manufactures intelligent Erbium Doped Fiber Amplifiers (EDFA) for current and next-generation optical communication networks. The Onetta amplifiers incorporate advanced optics, control electronics and firmware to provide leading edge performance.

Under the terms of the agreement, Bookham will acquire the entire issued share capital of Onetta in consideration for the issue of 27.6 million Bookham ordinary shares to the Onetta shareholders at closing (the "Consideration Shares") which, as at market close on Friday, May 21, had a value of 13.0 million ($23.3 million(1)). As part of the agreement, the Onetta shareholders have agreed to discharge liabilities of the company of approximately $6.0 million. In the first quarter of 2004 Onetta generated revenues of $3.3 million and made a loss of $2.1 million. The value of the net assets being acquired as at the end of the quarter was $7.5 million.

Giorgio Anania, Bookham's Chief Executive Officer, commented on the opportunities the acquisition would bring: "Bookham is currently a leading player in optical amplifiers. The addition of the Onetta team, the added revenue and the additional tier-1 customer penetration Onetta brings to us further strengthens our position in optical amplifiers and accelerates consolidation in this segment of the telecom optical component space. In addition, Onetta provides key skills that should strengthen Bookham's position as a leader in design and manufacture of optical line subsystems.

"We believe that strong operational and product synergies with Onetta will give rise to immediate cost saving opportunities since it fits well with our streamlining of manufacturing operations and cost reductions as the combination creates strong economies of scale in our amplifier production. Our excellent track record in consolidation underpins our confidence that significant financial benefits will be realized. We expect Onetta, after synergies are considered, to become cash-generating before the end of 2004."

Yan Sun, President and co-founder of Onetta, agreed with Anania's comments: "Bookham's strength and depth in amplifiers and subsystems and their strong channels to market is the perfect match to ensure continued revenue growth for the Onetta product portfolio. The combination will bring together a broad customer base and will allow significant synergies to be realized through vertical integration of key Bookham optical components."

Bookham Technology plc

Onetta Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like