EFFECT Photonics to become the most highly vertically integrated, independent coherent optical module vendor

EFFECT Photonics to acquire coherent optical digital signal processing (DSP) from Viasat

San Diego, United States America, 8 March 2022 – Today at OFC (Optical Fiber Conference) 2022, EFFECT Photonics, a leading provider of highly integrated optical communication products is announcing that it signed a definitive agreement to acquire coherent optical digital signal processing (DSP) and forward error correction (FEC) technology as well as a highly experienced engineering team from global communications company, Viasat Inc. (NASDAQ: VSAT).

Viasat is a long-established player in DSP and FEC technology. With eight generations of design IP, they have a proven track record of delivering successful field deployments.

From this acquisition, EFFECT Photonics will now own the entire coherent technology stack of all optical functions, including a high-performance tunable laser, together with DSP and FEC. This will enable the Company to deliver on its ambition to make high performance coherent communications solutions widely accessible and affordable. Furthermore, it will enable longer term economic and environmentally sustainable communications due to the ability to deliver high-end performance and reach within a small footprint and with lower power consumption. This opens the way to drive coherent technology into new places, revolutionizing the way the world interconnects.

This transaction is expected to provide the following customer benefits:

  1. EFFECT Photonics will be able to optimize the complete solution for any application addressing both existing challenges and new possibilities
  2. With full ownership of the key optical, DSP and FEC functions, EFFECT Photonics can offer seamless integration, cost efficiency and security of supply
  3. EFFECT photonics will be an independent vendor able to offer a full portfolio of building blocks such as the tunable laser and DSP, and/or complete solutions, increasing the choice reduced by recent mergers and acquisitions in the industry

EFFECT Photonics has also secured an additional $20M in Series-C funding bringing the total to $63M. Additionally, pursuant to the DSP acquisition agreement, Viasat will be joining EFFECT Photonics’ Supervisory Board and hold a minority interest in the Company.

“This is a significant step in accelerating our ambition to make coherent optical communications ubiquitous and further drive our product portfolio growth. We look forward to welcoming the team of highly skilled and experienced design architects and engineers who will be joining us to drive the development of energy efficient, high performance and affordable coherent solutions.

With all the recent changes in the industry landscape, this means that EFFECT Photonics is the only independent vendor able to deliver both the active optical components and the DSP. This will offer the market more choice and the ability to source superior solutions.” – James Regan, CEO EFFECT Photonics.

“Given the trend of the fiber optic communications industry towards consolidation to provide vertically integrated end-to-end solutions, we believe that combining Viasat’s assets and capabilities with the unique integrated photonics capabilities of EFFECT Photonics will create substantially more market opportunities and better products. By investing in this Netherlands-headquartered company, we will also further expand our presence in Europe and be able to partner with EFFECT to bring state-of-the-art integrated photonics  to Viasat’s own customers.” – Russell Fuerst, business area leader and vice president, Viasat.

–End of press release–

More on EFFECT Photonics here and here

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