Alcatel to Acquire Kymata

Paper deal values the Scottish startup at 134 million Euros ($117 million)

July 30, 2001

2 Min Read

PARIS -- Alcatel Optronics (Paris: CGO and NASDAQ: ALAO), a world leader in optoelectronic components for telecommunications systems, today announced it agreed to acquire privately held Kymata Ltd. Kymata is a key player in mastering planar technology for high-end passive optical network components, representing the majority of the fast growing Dense Wavelength Division Multiplexing (DWDM) market.

Under the terms of the agreement, 9.0 million Alcatel Class O shares and 2.2 million Alcatel Class A shares will be exchanged for all outstanding shares of Kymata. Based on the closing price in Paris on July 27, 2001, the transaction has an implied value of Euro 134 million.

Kymata produces Arrayed Waveguide Gratings (AWGs) multiplexer/demultiplexers, the first commercially available devices using planar processes. AWG is considered to be one of the leading technologies for the metropolitan optical network market, one of the fastest growing markets in the telecommunication industry and a strategic target for Alcatel Optronics. This acquisition also confirms Alcatel Optronics’ strategy to be a major player in the integration of active and passive optical components by strengthening its planar waveguide expertise as well as its passive component product lines. Alcatel Optronics is a recognized leader in active optical components.

“Kymata is a perfect match with Alcatel Optronics and will allow us to gain at least two years in time-to-market for planar products. This acquisition is a crucial step in the implementation of our strategy of active/passive integration, which we consider to be key to the future. Their high-end passive components complement our own high-end active component portfolio,” said Jean-Christophe Giroux, CEO of Alcatel Optronics. “We have identified significant synergies across the board, particularly in our marketing, sales and development efforts. In addition, I am pleased to have been able to use our stock as an acquisition currency in today’s volatile market environment.”

”We are very pleased to become part of the Alcatel Optronics family,” said Mike Hickey, CEO of Kymata. “The deal is a win-win for Kymata, our people and for Scotland. It provides our business with the resources and scale needed to achieve market leadership in a sector that is increasingly competitive. It provides our employees with outstanding career opportunities. And it provides Scotland with a world class research, development and manufacturing facility that strengthens its standing as a leading center in the global optoelectronic market. We believe our technology is at the leading edge of next generation optical components and look forward to pooling our R&D resources with Alcatel Optronics to better and more quickly meet the market demand for cost efficient and innovative solutions.”

The transaction is subject to various closing conditions and is expected to close by end of August.

See What's Cooking at Kymata ?

Alcatel Optronics (Nasdaq: ALAO; Paris: CGO.PA)

Kymata Ltd.

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