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Tuesday November 24, 5:08 pm Eastern Time
JDS FITEL announcement/acquisition
(Full text of press release from Canada NewsWire)
JDS FITEL Acquires Waveguide Technology for Optical Switching''
NEPEAN, ON, Nov. 24 /CNW/ - (TSE:JDS) - JDS FITEL Inc. announced today that it has signed an agreement to acquire the assets of the Akzo Nobel Photonics business unit from Akzo Nobel Business Developments B.V., a wholly owned subsidiary of Akzo Nobel N.V. In conjunction with the acquisition, JDS FITEL has also entered into a strategic alliance with AlliedSignal Inc. to further enhance the exploitation of the technology purchased from Akzo Nobel.
Akzo Nobel Photonics is a world leader in waveguide technology for optical switching. Using a proprietary waveguide technology based on highly specialized optical polymers, the company has developed robust, compact and fast optical switches which contain no moving parts. Optical switches are a key component for a variety of optical networking applications such as configurable add/drop multiplexers for dense wavelength division multiplexing (DWDM) systems, optical cross-connects, and protection switching. The Akzo Nobel Photonics product line includes 1x2, 2x2, 1x4 and 1x8 optical switches, as well as array configurations of 1x2 and 2x2 switches.
AlliedSignal is a world leader in the development of optical polymers and polymer waveguides for telecommunications applications. These polymers feature precise control over critical material parameters such as refractive index, mechanical properties and propagation loss. The performance optimization of polymer waveguide components is influenced both by these base materials and by waveguide formation processes. By bringing together AlliedSignal's material and process expertise with the newly acquired Akzo Nobel Photonics technology and product design capabilities, JDS FITEL will broaden its technology base and strengthen its optical switching portfolio for DWDM and other optical networking applications.
Jozef Straus, President & CEO commented: The waveguide technology at Akzo Nobel Photonics, along with AlliedSignal's expertise in polymers, will further strengthen our ability to address network functionality issues as optical networks continue to grow in complexity. By adding this technology to our portfolio, we will enhance our ability to address customer requirements from a multitude of technologies, further strengthening our position as a one stop shop in optical networking.''
Joop Sistermans, Executive Vice President Strategy and Technology for Akzo Nobel N.V., adds: We are proud of the technology and products developed in Akzo Nobel, and we are very pleased to see that Akzo Nobel Photonics has found the best possible company to pursue the growing opportunities in optical switching.
As a world leader in fiberoptic communications, JDS FITEL has the market presence and product development expertise to bring this technology to commercial success. We will continue to support JDS FITEL in their efforts.''
Meade Rudasill, Vice President and General Manager, AlliedSignal Advanced Technologies, stated: We are very excited by our strategic relationship with JDS FITEL and we look forward to furthering the development of optical polymer materials and planar waveguide technology for a broader range of optical networking applications.''
Under the terms of the acquisition, JDS FITEL will acquire all of the assets of Akzo Nobel Photonics for an initial cash purchase price of approximately $19 million plus a maximum aggregate earn-out of $6 million to be paid, based on financial performance, beginning in the third fiscal year after the close of the acquisition. The acquisition is expected to close in JDS FITEL's third quarter of fiscal 1999, subject to certain closing conditions including necessary approvals.
Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals and fibers. The company currently employs some 87,500 people in more than 60 countries. Consolidated sales for 1997 totaled NLG 24.1 billion (USD 12 billion / GBP 7.5 billion).
AlliedSignal is an advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. The company employs 70,500 people worldwide. AlliedSignal is a component of the Dow Jones Industrial Average and Standard & Poor's 500 Index.
JDS FITEL is a Canadian high technology company that manufactures and distributes a broad range of products for the growing fiberoptic communications market. The Company executes its business strategy through its advanced design capabilities, proprietary manufacturing tools and processes and, in particular, its early participation in advancing market and technology trends.
JDS FITEL's common shares are listed on The Toronto Stock Exchange under the symbol JDS.
/For further information: Corporate Contact: Marc Rene de Cotret, JDS FITEL Inc., 570 West Hunt Club Road, Nepean, Ontario, K2G 5W8, Telephone: (613) 727-1304, Ext. 1203, Facsimile: (613) 727-1852, E-mail: investor_relations(at)jdsfitel.com/
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