Maxim CEO Tunc Doluca remarked: “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.”
Acquisition Highlights:
- The acquisition is synergistic to Maxim’s optical transceiver product line and opens up new high-speed product opportunities.
- The combination of the two companies will provide a broad and powerful set of solutions for customers.
- Phyworks’ products for fiber-to-the-home (FTTH) applications complement Maxim’s datacom and telecom portfolio.
- Maxim and Phyworks combined will have market share leadership for transceiver chips for optical modules.
- Phyworks’ know-how opens up additional high-speed signal integrity product opportunities for Maxim.
- Phyworks has been successful in the Optical Infrastructure market.
- An outstanding engineering organization has achieved fast new product time-to-market.
- Leadership in bringing highly integrated products to the market has enabled module makers to produce very cost effective solutions. Going forward, Maxim’s brand name will strengthen customer traction. The high-speed market presents a large growth opportunity.
- This growth is driven by huge demand for data rich applications (high- definition video distribution and cloud computing)
- Served market for optical transceivers and high-speed signal integrity products is estimated to be $340 million in 2014
- The acquisition is immediately accretive.
- Phyworks’ gross margin is better than the Maxim average.
- With synergies, the acquired operating margin is better than Maxim’s excluding acquisition-related charges and amortization.
"RBC Capital Markets Corporation acted as financial advisor to Phyworks in connection with the transaction."
