Integrated circuits manufacturer Maxim Integrated Products (NASDAQ:MXIM) has entered into a deal to acquire Phyworks, a specialist in optical infrastructure, for US$72.5 million in cash.
NASDAQ listed Maxim outlined a number of reasons why it decided to grab Phyworks, including good synergies with its own product lines, an opportunity to reach customers directly with fiber-to-the-home (FTTH) which complements its own datacom and telecom interests, and an opportunity to improve overall margins, as Phyworks currently generates better operating margins. The acquisition is also immediately accretive for Maxim.
"Business and consumer appetite for access to information anywhere, anytime, will continue to grow exponentially. The backbone to support the increased data traffic is high-speed optical networks. Additionally, optical networks are now beginning to reach consumers directly with fiber to the home. The addition of Phyworks' product portfolio and talent to Maxim strengthens our market position to capitalize on this growth,” Maxim CEO Tunc Doluca stated this morning.
Phyworks business is particularly synergistic with Maxim`s optical transceiver product line, the company added.
"As the optical communications markets continues to evolve, technologies from both companies can be combined to create higher performance, lower cost solutions that will enable end users to build next generation optical networks," added Stephen King, President and CEO of Phyworks.