EFFECT Photonics gets into the merchant coherent technology game with assets from Viasat

March 11, 2022
The deal is expected to close, “in a few weeks,” according to EFFECT Photonics sources.

InP-based photonic integration technology and optical module supplier EFFECT Photonics will jump into the coherent transmission game via an agreement to acquire the coherent optical digital signal processing (DSP) and forward error correction (FEC) technology and complementary engineering team from Viasat Inc. (NASDAQ: VSAT). Viasat also participated in a new $20 million tranche of Series C funding. The deal is expected to close, “in a few weeks,” according to EFFECT Photonics sources.

In addition to enabling its own coherent module aspirations, EFFECT Photonics will offer the DSP technology, coupled with its photonic integration expertise, on the merchant market. The goal, according to James Regan, the company’s CEO, is to enable the application of coherent transmission technology to new application areas, such as inside the data enter and in access networks. The DSP and FEC assets are mature enough to support 800G, Regan said.

The engineering team numbers approximately 20 people, who will continue to work out of their current facilities in Cleveland, Regan said. As part of the transaction, Viasat will receive a seat on EFFECT Photonics’ supervisory board and hold a minority interest in its new partener. Viasat will retain some engineers with coherent transmission expertise for its own needs; Regan added that the two companies will collaborate on coherent photonics for space-based applications.

“Given the trend of the fiber-optic communications industry towards consolidation to provide vertically integrated end-to-end solutions, we believe that combining Viasat’s assets and capabilities with the unique integrated photonics capabilities of EFFECT Photonics will create substantially more market opportunities and better products,” commented Russell Fuerst, business area leader and vice president, Viasat. “By investing in this Netherlands-headquartered company, we will also further expand our presence in Europe and be able to partner with EFFECT to bring state-of-the-art integrated photonics to Viasat’s own customers.”

Partnership with Jabil

Shortly before EFFECT Photonics announced the agreement with Viasat, the company and Jabil Photonics revealed they will collaborate on the development of QSFP-DD coherent modules. A source at Jabil said on the OFC 2022 show floor that the two companies had not yet discussed using EFFECT Photonics’ upcoming DSP capabilities as part of the co-development. EFFECT’s expertise in photonic integrated circuits was the immediate catalyst for the tie-up, the Jabil representative said.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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