Nortel buys Photonic Technologies for up to $35.5 million

Nortel Networksped up Qtera (Boca Raton, FL), Xros (Sunnyvale, CA), and Coretek (Wilmington, MA) in rapid succession (see Qtera's Ultra-Long Haul Photonic Transport Worth $3.25 Billion to Nortel, Nortel Networks to Acquire CoreTek For Up to $1.43 Billion, Nortel Steps Into MEMS Switching With Xros Acquisition), <%=company%> (Brampton, ON) has been fairly quiet on the acquisition front in recent months, instead taking steps to expand production and tighten its structure by unloading properties that were no longer a good fit with its strategy (see Nortel Networks Creates Fiber Optic Components Business Unit, Sells Off Microelectronics Operations to STMicroelectronics).

The company is back in buying mode with the purchase of Australian optical components manufacturer Photonic Technologies (Sydney, Australia) for a variably cash figure that could reach as high as $35.5 million. Photonic Technologies focuses on polarizing components such as circulators and dynamic gain flattening filters. A portion of the US$35.5 million consideration is contingent upon Photonic Technologies meeting certain business objectives. The acquisition is expected to be neutral with respect to Nortel Networks earnings per share from operations this year (excluding acquisition-related charges).

Nortel first hooked up with the company in 1998, making a one-third equity investment and teaming up for product development. The company will become part of Nortel's High Performance Optical Component Solutions (HPOCS) business unit.

Edited by Kristin Lewotsky, Photonics Online