FEBRUARY 8, 2008 By Stephen Hardy -- Enablence Technologies Inc. (search for Enablence) has extended its vertical integration strategy and its product portfolio, thanks to the closing of its acquisition of ANDevices, Inc. (search for ANDevices).
ANDevices supplies products such as tunable optical dispersion compensators and arrayed waveguide gratings (AWGs) for ROADMs for the metro and long-haul markets based on planar lightwave circuit technology. These products, as well as the company's splitter, triplexer, and filter offerings, complement Enablence's existing FTTH transceiver products, according to Enablence CEO Arvind Chhatbar, and extends the company's addressable market to new application areas faster than the company would have achieved on its own. Chhatbar said in an interview with Lightwave that his company will leverage its Dispersion Bridge PLC technology and ANDevices' packaging expertise in a new generation metro and long-haul products that could include an optical channel monitor.
In addition to products and expertise, ANDevices also brings an in-house optical wafer fabrication facility. '"Enablence now has its own internal large volume optical wafer fabrication facility for the production of PLCs for its FTTH transceivers as well as a suite of complementary optical products," Chhatbar was quoted as saying in a press release. "The acquisition gives us a strong U.S. presence and the ability to expand our product offerings into emerging markets by combining our dispersion bridge technology with the capabilities of the ANDevices team."
The price tag for all this was US$13.5 million in cash and 9,085,113 common shares of Enablence. The common shares issued under the Agreement will be subject to certain statutory hold periods and contractual selling limitations. Enablence shares were trading at CAN$2.44 on the TSX Venture Exchange at 3 PM today.
ANDevices will operate as a wholly owned subsidiary of Enablence. ANDevices president Dr. Jacob Sun will continue to run the subsidiary. Additionally, Dr. Sun has been appointed to the position of COO of Enablence replacing the former vice president of operations, whose position was eliminated on January 30, 2008.
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