SEPTEMBER 8, 2010 -- Maxim Integrated Products Inc. (Nasdaq:MXIM) says it has acquired privately held Phyworks Ltd. for approximately $72.5 million in cash.
Maxim believes the acquisition is synergistic to its optical transceiver product line and opens new high-speed product opportunities. In particular, Phyworks' products for fiber-to-the-home (FTTH) applications complement Maxim's datacom and telecom portfolio, the company says. (See "Phyworks releases TIA to enable replacement of APDs" for an example.) Phyworks got its start making electronic dispersion compensation devices (see "Phyworks fights for EDC market position").
The acquisition is immediately accretive, Maxim says. Phyworks' gross margin is better than the Maxim average. With synergies, the acquired operating margin is better than Maxim's, excluding acquisition-related charges and amortization.
Maxim CEO Tunc Doluca remarked, "Business and consumer appetite for access to information anywhere, anytime, will continue to grow exponentially. The backbone to support the increased data traffic is high-speed optical networks. Additionally, optical networks are now beginning to reach consumers directly with fiber to the home. The addition of Phyworks' product portfolio and talent to Maxim strengthens our market position to capitalize on this growth."
"Phyworks is very pleased to be joining Maxim," said Stephen King, president and CEO of Phyworks. "As the optical communications market continues to evolve, technologies from both companies can be combined to create higher performance, lower cost solutions that will enable end users to build next-generation optical networks. Maxim is the ideal partner for our customers and for our employees, and this combination strengthens Maxim's position as a leader in the markets we share."
RBC Capital Markets Corporation acted as financial advisor to Phyworks in connection with the transaction.
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