Careers & Certifications

03:30 AM
Connect Directly
RSS
E-Mail
50%
50%

JDSU's Bid for the Enterprise

JDSU's betting $340M it can challenge Agilent and Finisar in the SAN components game

JDS Uniphase Inc. (Nasdaq: JDSU; Toronto: JDU) announced last night its intent to purchase a portion of the microelectronics business of IBM Corp. (NYSE: IBM) for $340 million (see JDSU to Buy IBM Transceiver Division).

The deal will put JDSU squarely among suppliers of Fibre Channel interface converters for leading equipment makers. "[T]he extension of our product breadth into SAN and LAN networks broadens our addressable market to include customers that serve enterprise networks," says JDSU CEO Jozef Straus in a prepared statement. "Examples of new customers include Compaq, IBM, Sun, Dell, HP, Brocade, and Extreme."

What exactly is JDSU buying, and why?

JDSU is buying a unit of IBM's microelectronics business that makes transceivers and interface converters for storage area network (SAN) and gigabit Ethernet local area network (LAN) equipment, such as switches.

JDSU will pay $100 million in cash for the business, and the rest in stock. Another $85 million is payable at the start of 2003 if the business meets certain financial goals after JDSU's takeover. In a prepared statement, JDSU says it expects to record $300 million in goodwill for the purchase, "minus the in-process charge that will be based on an appraisal that will begin shortly."

Previous
1 of 4
Next
Comment  | 
Print  | 
More Insights
Slideshows
Cartoon
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
Video
Twitter Feed