from the September 2012 issue

Finisar to acquire optical amplification company RED-C Optical Networks for $23.7 million

Fiber optic subsystems and components provider Finisar has acquired optical amplification company RED-C Optical Networks for $23.7 million in cash.

RED-C had $3.2 million of cash and no debt. Finisar will also pay stockholders and certain employees up to an additional $20 million subject to the achievement of financial performance targets.

The acquisition will broaden Finisar's product lines primarily for telecom applications by adding key amplification technologies, including Erbium Doped Fiber Amplification (EDFA), Raman amplification and dynamic Hybrid amplification.

"RED-C has been an innovator in optical amplification, which we view as an increasingly critical technology as networks get faster and more complex," said Eitan Gertel, Finisar's CEO. "As we have further penetrated the line card market with our differentiated WSS technology, we see this acquisition as a tremendous opportunity to further innovate for our customers and advance our vertical integration strategy."

RED-C was founded in 2000 by Yossi Boker, President & CEO and Dr. Uri Ghera, CTO. It was previously a business unit within Elop Electro-Optics Industries, merged later with Elbit Systems (NASDAQ: ESLT).

The company has over 140 employees, all of whom are located in Israel. Following the acquisition, the RED-C business will operate as a subsidiary of Finisar, with principal operations continuing at its current facility in Israel.

Finisar is a global technology leader of fiber optic subsystems and components that enable high-speed voice, video and data communications for networking, storage, wireless, and cable TV applications.

Finisar is headquartered in Sunnyvale, California, USA with R&D, manufacturing sites, and sales offices worldwide. The company (NASDAQ:FNSR) has a market cap of $1.17 billion

Reprinted from the Israel High-Tech & Investment Report September 2012

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