Monday, April 9, 2012

Fujikura announces intent to acquire Nistica

TOKYO, JAPAN: Fujikura Ltd has signed a definitive agreement to acquire privately held Nistica, a Bridgewater, New Jersey based company that supplies wavelength selective switches to Network Equipment Manufacturers. The acquisition adds Nistica’s agile optical networking modules to Fujikura’s diverse product portfolio of optical fibers, cables and optical communication devices for next-generation broadband networks.

Under the terms of the agreement, Fujikura will acquire shares in Nistica that it does not currently own. Nistica founders and key employees have signed agreements with Fujikura to ensure continued development of their products on the roadmap and, going forward, Nistica will operate as a subsidiary of Fujikura.

“Fujikura has been a strategic partner of Nistica and an investor in Nistica since 2007," said Noboru Sugiyama, senior VP and member of the Board. “The steady growth in high-volume delivery of wavelength selective switches and the transparent working relationship between our teams convinced us that acquiring Nistica’s talent was the logical next step in our partnership. We are delighted to support this team in its tradition of launching innovative products into the marketplace.”

Nistica’s FULL FLEDGE series of wavelength selective switches have been deployed in low port-count 1x2 and 1x4 applications, and the newly launched high port-count FOURIER modules are being designed into systems geared toward colorless, directionless, contentionless and gridless networks.

“Nistica’s customers have deployed thousands of our wavelength selective switches, and have asked us to invest further in the R&D of agile optical solutions for next-generation networks,” remarked Ashish Vengsarkar, CEO of Nistica. “Fujikura’s financial, manufacturing, and R&D power will spur new product development and launch us into the next stage of the company’s life-cycle.”

Nistica was founded in 2005 by Jefferson Wagener and Thomas Strasser, and has raised $31M in equity investment from Battelle Ventures, Novitas Capital, Technology Venture Partners, MMV Financial, Mizuho Capital, Fujikura, NTT Electronics and notable industry individuals Bill Cadogan and Kal Shastri.

The acquisition of Nistica is subject to various standard closing conditions and is expected to be complete in the first quarter of Fujikura's fiscal year 2012. NTT Electronics Ltd. (NEL) will continue to hold its shares in the company going forward.

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