JDSU to Buy IBM Transceiver Division

JDS Uniphase Corp. has agreed to purchase the optical transceiver business of IBM for $340 million in cash and stock

December 20, 2001

2 Min Read

OTTAWA and SAN JOSE, Calif. -- JDS Uniphase Corporation (Nasdaq: JDSU; Toronto: JDU) today announced that it has agreed to purchase the optical transceiver business of IBM Corporation. The pending acquisition will extend JDS Uniphase's product breadth to provide optical solutions beyond its existing telecommunications markets to growing data communications markets. IBM's optical data communications products include small form factor (SFF) transceivers and Gigabit Interface Converters (GBIC) for storage area networks (SAN) and local area networks (LAN) using optical Fibre Channel and Gigabit Ethernet protocols. The transceiver business, with principal operations in Rochester, MN, broadens both the product lines and markets of JDS Uniphase. The IBM products expand the JDS Uniphase transmission module product line from long haul telecommunications to very short reach carrier and enterprise applications, providing what the Company believes will be the industry's broadest optical transmission product line, including leading optical Fibre Channel products for SAN applications and Gigabit Ethernet products for LANs. In addition, with this acquisition JDS Uniphase expands its customer base to include enterprise networking markets. The IBM team will bring considerable technical depth and expertise that is complementary to the core competencies of JDS Uniphase. JDS Uniphase believes the combination will extend its technical depth through the addition of significant expertise in low cost, small form factor packaging, proprietary latching, and low cost materials and assembly techniques that are critical for high volume data communications applications. The team joining JDS Uniphase also brings considerable expertise in high-speed mixed signal silicon germanium and BiCMOS integrated circuit design as well as enhanced analog, microwave, optoelectronic, and mechanical design resources. "This acquisition immediately positions JDS Uniphase as a leading supplier of fiberoptic solutions in the large and growing data communications markets," said Jozef Straus, JDS Uniphase co-chairman, president and chief executive officer. "With this unit's innovative packaging and strategic design capabilities, we believe we can offer enterprises the same value-added proposition for data communications as we do in telecommunications: improved network flexibility, capacity, reach, reliability and cost through advanced fiberoptic components and modules. By offering truly end-to-end network solutions, we believe we can provide solutions to a broader customer base and expand our addressable markets while building further on our core fiberoptic expertise." Under the terms of the agreement, JDS Uniphase will pay $340 million in a combination of cash and stock, of which $100 million will be paid in cash. Additional payments of up to $85 million in cash or stock may be made in early calendar 2003 based on the financial performance of the acquired business. Closing of the transaction is subject to customary conditions, including the receipt of government approvals.JDS Uniphase Inc. IBM Corp.

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