JDS Uniphase Expands Datacom Presence with E20 Acquisition

JDS Uniphase announced on May 17, 2004 that it closed the transaction to acquire E2O Communications, Inc. (E2O). JDS Uniphase purchased all outstanding shares of E2O, a privately-held company, for approximately $60 million cash (See related press release).

E2O develops and manufactures optical transceivers to support Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 1X-4X Fibre Channel, 10 Gigabit Fibre Channel, ESCON, ATM, and SONET.

According to Don Bossi, president of the Transmission Products Group, the E2O acquisition will increase JDS Uniphase・s presence in the datacom market. Assets that E2O brings include new customers, operational cost synergies, and valuable new technologies for potential future products.

The transaction also brings JDS Uniphase a seasoned team with a record of impressive accomplishment and a set of competencies that are well matched to those of the JDS Uniphase Datacom Business Unit. This acquisition was especially attractive and offered a high likelihood of a smooth integration, according to Bossi, because of the synergies between the two companies and the cultural fit.

In order to ensure uninterrupted customer service during the short term, equivalent product offerings from both companies will be maintained and will continue to be manufactured at their current sites. These offerings will eventually be converged to common platforms in the course of the regular product design cycle.

Complementary Strengths

The E2O and JDS Uniphase teams have complementary capabilities that the Company expects will lead to technological advances and significant cost improvements. E2O also brings to JDS Uniphase several transceiver products that are not offered in the Company・s current product line.

Within the product realm, E2O expands JDS Uniphase technology with its additional small form factor technology and digital monitoring capabilities. JDS Uniphase believes that the complementary research and development capabilities of the two organizations and E2O・s proprietary technology, such as their long wavelength VCSEL, offers breakthrough potential for the 10 G enterprise market. E2O also has VCSEL leadership in long wavelength VCSELs, which address different applications than the short wavelength VCSELs that are currently in widespread use.

Organizational Integration

As part of the integration, E20・s sales force will become a dedicated JDS Uniphase datacom sales unit under the direction of Rob Crandell. The E2O design team will become part of the existing JDS Uniphase Datacom Business Unit which will be led by former E2O chief executive officer, H.C. Lee. The Datacom Business Unit is one of the business units within the Transmission Products Group led by Bossi. The Rochester-based data communications team of the Datacom Business Unit will continue to lead the North American design effort under Lee・s management.