High-power fibre laser and amplifier specialist IPG Photonics plans to acquire Menara Networks, a provider of optical transmission modules and subsystems, as the company expands its range of telecom products.
The cash purchase price is $46.8 million (€41 million), subject to closing adjustments, and is projected to close in the second quarter of 2016.
Menara's optical modules are deployed by cable multi-system operators (MSOs), carriers and data centres in North America and in selected international networks. The acquisition gives IPG a route into the growing market for pluggable optical modules and subsystems, while giving Menara access to IPG's based of international customers outside North America.
‘This acquisition broadens and complements our telecommunications offerings… Together, we can offer our customers an expanded telecom technology platform with more integrated products with superior performance and economics,’ said Dr Valentin Gapontsev, IPG Photonics' chairman and CEO. ‘The acquisition also affords IPG a better position to capitalise on the robust growth of optical networking driven by video and broadband access.’
‘The on-going shift to cloud based services and infrastructure has placed unprecedented strain on data centres and telecom/cable operators' optical networks and presents a significant opportunity for Menara's differentiated products,’ added Siraj Nour El-Ahmadi, Menara CEO, chairman and co-founder.
IPG Photonics and Menara Networks had recently announced a partnership to provide an integrated solution for simplified repeaterless 100G dense wavelength division multiplexing (DWDM) transmission for metro and data centre interconnection.
Menara's management team, including cofounders Siraj Nour El-Ahmadi and Salam Elahmadi, and other employees are planning to remain with the combined company.
Menara Networks had revenues of approximately $21 million in 2015 and is profitable.
