IPG Photonics has entered into an agreement to acquire Menara Networks, a provider of optical transmission modules and systems, which will allow IPG to expand its current telecom product offerings.
The cash purchase price is $46.8 million, subject to closing adjustments, and is projected to close in the second quarter of 2016.
Menara's products are deployed in cable multi-system operators (MSOs), carriers and data centres in North America and in selected international networks. The acquisition provides IPG entry into the growing optical pluggable systems market and leverages IPG's international market access 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.