JDS Uniphase Corporation has 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.
According to a statement, the transceiver business 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 short reach carrier and enterprise applications, providing what the company believes will be the industry’s broadest optical transmission product line.
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.