Major optic communications companies bid for XLight

If a deal does not go through, the company is planning another financing round.

Sources inform “Globes” that Israeli start-up XLight Photonics has in the past negotiated for a merger with a number of optical communications companies.

The sources added that the other companies had initiated the contacts, after XLight officially launched its commercial product, and began marketing it to a number of customers. The sources also said that after XLight began marketing, a number of major optical communications firms bid to acquire the company. XLight Photonics is now considering its terms for acquisition. If a deal does not go through, the company is planning another financing round to raise several million dollars, in order to expand its efforts to market its new product.

XLight develops switches for urban network routers. The company, founded in July 2000, has raised $9 million from Pitango Venture Capital, Jerusalem Venture Partners, and Ascend Technology Ventures. In July 2002, the company raised an undisclosed amount from an investor in an internal financing round.

XLight develops switches for urban network routers. The company, founded in July 2000, has raised $9 million from Pitango Venture Capital, Jerusalem Venture Partners, and Ascend Technology Ventures. In July 2002, the company raised an undisclosed amount from an investor in an internal financing round.

XLight develops switches for integrated circuits. The switch is designed as part of the circuit and of larger products. A number of Israeli companies are competing in this market, such as Trellis Photonics (which has gotten into difficulties, and is operating on a small scale until the market recovers), Lynx Photonic Networks, Sivicom, and a long list of others looking in recent months for ways to avoid closing down.

It is believed that the Israeli optics market will see a number of mergers in the near future, but these will not be between companies of equal status. Companies with money and mediocre intellectual property will combine with poor companies that have good technology, while many will have to discontinue operations. Perhaps the first to publicly announce a possible merger was Lynx Potonic, and it is likely to be quickly joined by others.

Published by Globes [online] - www.globes.co.il - on December 9, 2002

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