OCP Buys PON Supplier
WOODLAND HILLS, Calif., July 18, 2006 -- Fiber optic subsystems and modules manufacturer Optical Communication Products Inc. (OCP) announced it will acquire privately-held GigaComm Corp., a Taiwan-based supplier of passive optical network (PON) fiber-to-the-home components, for $20 million in cash.
GigaComm supplies fiber-to-the-home (FTTH) modules in Japan to technology companies including Mitsubishi Electric Co. GigaComm was founded in 2000, has its headquarters and manufacturing facilities in the Hsinchu science-based industrial park in Taiwan and has approximately 300 employees.
OCP was founded in 1991 and is based in Woodland Hills. Furukawa Electric Co. Ltd., based in Tokyo, currently owns 58 percent of OCP's stock. The company has approximately 370 employees.
The transaction is OCP's initial venture in Asia and is projected to be completed by the end of this summer, the company said. It expects the acquisition to increase its revenues by approximately 25 percent.
"The acquisition of GigaComm gives us an enhanced ability to increase capacity through its integrated manufacturing facility, an important second and competitive source of lasers, and a talented pool of engineers and management in Asia," said Muoi V. Tran, OCP's chairman and CEO.
The Japanese FTTH market is the largest in the world, with the number of FTTH subscribers nearly doubling to 5.4 million over the past year. GigaComm holds the majority of the country's market share for Gigabit Ethernet passive optical network (GEPON) modules, which carry data, video and IP voice services over fiber optic networks. NTT, Japan's largest service provider, has reported that it expects to have 30 million FTTH subscribers by 2010.
After the acquisition, GigaComm will become a wholly owned subsidiary of OCP and continue to operate in Taiwan. Jacob Tarn, GigaComm's president and CEO, will remain with GigaComm and continue to lead the company's operations, OCP said.
For more information, visit: www.ocp-inc.com
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