Oclaro has acquired Xtellus, a designer and manufacturer of liquid crystal-based dynamic optical modules and components for dynamic DWDM networks.
Oclaro is a designer and manufacturer of integrated optical components, modules and subsystems for fibre optic communication networks.
Under the terms of the agreement, the share holders of Xtellus will receive Oclaro’s common stock worth USD33m, a portion of which will be held in escrow for 18 months to support Xtellus’ indemnification obligations to Oclaro.
The agreement also provides for a value guarantee under which stockholders of Xtellus could receive up to USD7m in additional consideration if Oclaro common stock trades below certain levels at the end of calendar 2010 and Oclaro’s revenue from Xtellus products is more than USD17m in calendar 2010.
Earlier, Xtellus had raised venture capital funding from Alta Berkeley, Israel Seed Partners and NanoDimension Management.
The acquisition completes the overall portfolio of product areas required to support Oclaro’s positioning throughout the metro and long haul areas of the telecommunication market. By combining the wavelength selective switches portfolio with Oclaro’s integrated subsystem design capability also positions Oclaro for a strong position in the high growth reconfigurable optical add/drop multiplexer market.
