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NeoPhotonics Makes a 100G Move

The pending acquisition of Santur is all about photonic integration -- and the end of Santur's IPO dreams

Craig Matsumoto

September 29, 2011

1 Min Read
NeoPhotonics Makes a 100G Move

NeoPhotonics Corp. (NYSE: NPTN) announced Thursday that it's planning to acquire privately held optical components vendor Santur Corp.

NeoPhotonics is offering about US$39.2 million plus possibly another $7.5 million contingent on Santur's performance. Santur's revenues were $21 million for the six months ending June 30, according to NeoPhotonics.

The deal is expected to close by year's end.

Why this matters
Suppliers are gearing up for the 100Gbit/s product cycle, and NeoPhotonics is no exception. The deal would give NeoPhotonics, which stakes its name on photonic integration, some 100Gbit/s-related indium phosphide (InP) piece-parts to integrate.

It also gives NeoPhotonics an easy way into the 10x10 multisource agreement (MSA). Santur was an early champion of the transceiver format, which is an alternative to telecom's 100Gbit/s standards and has the backing of some big customers including Brocade Communications Systems Inc. (Nasdaq: BRCD) and Google (Nasdaq: GOOG).

Santur also has coherent 100Gbit/s optics, according to the NeoPhotonics press release.

Separately: So much for that IPO -- Santur's, that is. The company strove to go public years ago but couldn't get it done. While $46.7 million is nothing to sneeze at, Santur raised at least $108 million in its 12-year lifetime, by Light Reading's count.

For more
Here's a bit more on 100Gbit/s and Santur's road to an exit.

  • Santur Ships 10x10 CFPs

  • Level 3's Paul Savill: Not Hot on the Cost of 100G (video)

  • NeoPhotonics Sets IPO Terms

  • Optical Exits

  • Santur Reaches for 100-Gig

— Craig Matsumoto, West Coast Editor, Light Reading

About the Author(s)

Craig Matsumoto

Editor-in-Chief, Light Reading

Yes, THAT Craig Matsumoto – who used to be at Light Reading from 2002 until 2013 and then went away and did other stuff and now HE'S BACK! As Editor-in-Chief. Go Craig!!

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