Arasor International Ltd. a developer of telecommunications and consumer optoelectronic products, announced this week it will acquire US laser company Alfalight and Australia-based optical coupler maker AOFR Pty Ltd. for a total of $63 million. The all-scrip acquisition brings together optoelectronics, telecommunications, and semiconductor manufacturers to address emerging markets with their combined technologies, the companies said. "We now control the three key elements common to all our products (optical chip, laser chip and coupler)," Arasor Chief Executive Simon Cao said in a statement. "We are very excited about the prospect of expanding our product offering to include laser components for the telecom market." Both companies bring with them "blue chip" customers, including Telstra, Avanex, and Siemens. Alfalight and AOFR, which are both cashflow positive, are expected to generate revenue of $20 million annually, Cao said. The purchase price of each company individually was not disclosed. Alfalight was founded in 1998 in association with the University of Wisconsin and the Reed Center for Photonics to create high-power, high-reliability diode laser sources based on technology developed at the center. It currently manufactures high-power diode lasers for industrial, defense, and telecommunications markets. The company has received more than $57 million in venture capital and "substantial" government research and development funding, Arasor said. Alfalight's assets include an advanced InGaAs fab in Madison, Wis., where they grow their laser chips. Under the agreement, which is expected to close Nov. 1, Alfalight will become a wholly owned subsidiary of Arasor and Mohan Warrior will continue on as CEO. "I am excited by the growth prospects that Arasor brings, particularly in the emerging Asian markets of China and India,” Warrior said in the same statement. AOFR, established in Canberra, Australia, in 1984, is a subsidiary of fiber manufacturer Verrillon Inc. of North Grafton, Mass. It makes optical couplers for fiber lasers and WDM (wavelength division multiplexing) used by optical, defense and wireless companies. Arasor said AOFR designs its technology and platforms in Canberra and mass manufactures its products at a fully automated facility in Asia. Other fiber optics manufacturers also use AOFR's automation machines, which are part of the $20 million in assets it brings to the deal, Arasor said. "With this acquisition from Verrillon Inc., we take control of the second critical element of light-delivery technology common to all our products, and broaden our customer base to include most of the tier-one telecom players in the US," Cao said, adding that Arasor will also expand AOFR's customer base to include established customers in China and India. For more information, visit: www.arasor.net