Occam to Acquire GPON Products from Terawave

Occam Networks announced today that it has signed a definitive asset purchase agreement to acquire certain assets and to assume certain liabilities of Terawave Communications, Inc., a leading GPON innovator.

“Fiber to the premise is increasingly the frequent choice for carriers as they build next generation access networks,” said Bob Howard-Anderson, President and CEO of Occam Networks. “We believe the acquisition of Terawave’s technology, products and customers should better position Occam for success in FTTx with our core telco customers as well as broaden the markets we serve.”

The transaction is expected to include:

- FSAN ITU G.984 GPON interoperable technology,

- Technology focused on GPON physical interfaces,

- Products and technology directed towards Metro Ethernet, and

- Technology license agreements to two leading silicon manufacturers: Ikanos Communications, Inc. and Mindspeed Technologies, Inc.

Following the closing of the acquisition, Occam also intends to make employment offers to certain employees of Terawave , including members of Terawave’s team of optical development and systems engineers, who have broad experience in fiber network products and deployments.

Terawave was founded in 1998 by a team of engineers and scientists led by Ray Lin, CEO, to focus on the emerging fiber to the business and fiber to the home markets.

“We believe that success in the fiber access market requires a broader set of service interfaces, such as POTS, DS1 and DSL,” said Mr. Lin. “Integrating Terawave’s optical technology with Occam’s BLC 6000 should create a superior platform for carriers looking to deploy high speed access networks for the delivery of IP TV, higher speed internet and VoIP services.”

As consideration for the asset purchase, Occam will pay Terawave $3.4 million in cash, forgive bridge financing of up to approximately $1.9 million and assume certain liabilities and purchase commitments. Occam will also incur transaction and integration related expenses.
 

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