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Arroyo Optics and Lightcross to Merge

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SANTA MONICA, Calif., Oct. 3 -- Arroyo Optics Inc., a manufacturer of flexible wavelength management solutions for telecommunications equipment, and Lightcross Inc., a manufacturer of integrated, silicon-based optical products for telecommunications equipment, announced yesterday they have agreed to merge. The merged company will be named Arroyo Optics and will be comprised of technologies and products developed with over $50 million of combined R&D capital from private equity investors. Both companies focus on products targeting fiber optics infrastructure applications for high-bandwidth services in the communications market.

Lightcross CEO Robert Barron will become CEO, chairman and president of the resulting company. Barron states, "By joining the companies, the shareholders of each company believe a unique advantage in the market is created. With broadened technology platforms, as well as a fortified commitment of financial resources from investors, the company is well positioned to expand its offering of leading products to current and prospective clients."

With the merger, two product platforms will be offered to manufacturers of dense wavelength division multiplexing (DWDM) equipment, which are essential in fiber optics infrastructures. The companies said the products will reduce network costs, enhance network flexibility, facilitate network scalability and minimize craft sensitivity in network operations.

Jean-Louis Malinge, photonics industry executive and a consultant for the merger, said the product lines offer "a nice risk balance. The technology platforms share basically the same tier 1 and tier 2 customers, and within these customers' organizations, the same procurement and in some cases the same engineering groups."
Oct 2003
CommunicationsNews & Featuresoptics

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