Bookham buys Nortel’s optical assets

Bookham Technology has entered into an agreement to acquire the Optical Transmitter and Receiver and Optical Amplifier Businesses of Nortel Networks Corporation.

Bookham Technology, a provider of integrated optical components and subsystems for fibre optic communication networks, announced today that it has entered into an agreement to acquire the Optical Transmitter and Receiver and Optical Amplifier Businesses of Nortel Networks Corporation.

Under the terms of the agreement, Nortel Networks will sell its transmitter and receiver business located in Paignton, UK, Ottawa, Canada, and Harlow, UK, and the pump laser and amplifiers business located in Paignton, UK, Zurich, Switzerland, and Poughkeepsie, New York. The assets include patents, other intellectual property and trademarks.

As part of the deal, Nortel Networks Limited, a subsidiary of Nortel, has also agreed to enter into a $120.0 million (£76.5 million) 3-year supply agreement with Bookham.

Approximately 1,000 employees will have the opportunity to continue their employment with Bookham Technology after redundancies are addressed and Bookham Technology will assume existing customer contracts.

The deal is subject to approval by Bookham’s shareholders at an Extraordinary General Meeting to be held on 5 November 2002. The transaction is expected to close in the fourth quarter of 2002.