JDSU to buy optical network vendor Picolight

Optical network vendor JDS Uniphase has agreed to buy transceiver maker Picolight for US$115 million.

JDS Uniphase (JDSU) is buying optical transceiver maker Picolight to serve the growing market for high-speed data connections in data centers, enterprises and metropolitan-area networks.

The optical networking vendor said Tuesday it agreed to buy Picolight for US$115 million in stock and an additional cash sum of up to US$10 million if certain revenue targets are met this calendar year. The deal is expected to close in JDSU's fiscal fourth quarter ending June 30.

Enterprises are stepping up data center and backbone networks from Gigabit Ethernet to 10-Gigabit Ethernet while service providers lay out high-speed fiber networks around cities. Increasing bandwidth demand, powered in part by video and other multimedia applications, are driving growth in network infrastructure following the telecommunications crash early in this decade that slammed the stocks of JDSU and other vendors.

Picolight designs and makes transceivers for Fibre Channel, Gigabit Ethernet, 10-Gigabit Ethernet and parallel optics, with speeds as high as 40G bps (bits per second). It has been a pioneer in a technology called VCSEL (vertical cavity surface-emitting laser) used for optical links with low power consumption and heat generation, according to the companies.

JDSU sells components and equipment for a variety of networks including enterprise, cable and telecommunications. The buyout will give Picolight global reach and also help JDSU build toward 100G bps products in the future, the companies said.

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