Omron to buy NHK Spring's FTTH optical coupler line

September 1, 2006 -- To expand its business in the FTTH optical coupler market, Omron plans to combine NHK Spring's quartz optical waveguide technology with its own stacked polymer optical waveguide technology.

September 1, 2006 -- Omron Corp., a provider of automation, sensing, and control technologies with headquarters in Kyoto, Japan, has reached a preliminary agreement with NHK Spring Co., Ltd. to acquire that company's FTTH optical coupler business. The two companies are presently working to finalize the details of the agreement, which is scheduled to take effect on November 1, 2006.

NHK Spring's optical coupler business includes the component micro-fabrication technologies and film deposition technologies required to produce high-performance quartz optical waveguides, as well as for the development and manufacture of optical coupler modules that incorporate these optical waveguides.

An optical waveguide is an element that branches optical power; an optical coupler is a branching device for optical power. An optical coupler is made by connecting optical fibers to both ends of an optical waveguide. Optical couplers are available with 4, 8, 16, and 32 branches.

NHK Spring is known as a top supplier of optical couplers in North America, with total sales of 1.3 billion yen in fiscal 2005. Omron says it expects to enjoy substantial synergies through the acquisition, as one of first companies in the world to commercialize an optical coupler module incorporating proprietary stacked polymer optical waveguide technology (which the company calls Stacked Polymer Optical IC/Advanced Technology (SPICA).

Omron says it will combine NHK Spring's quartz optical waveguide technology with its own stacked polymer optical waveguide technology to create high-performance, cost-competitive products that will reinforce its product lineup and expand its business in the FTTH optical coupler market. The agreement is also expected to help stimulate sales of Omron's optical switches and CWDM mux/demux modules.

As a result of the acquisition and the synergies it is expected to generate, Omron forecasts that its optical communications component business will achieve total sales in fiscal 2006 of approximately 2 billion yen.


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