Enablence Technologies Inc.

Enablence Technologies Inc.

May 05, 2008 19:21 ET

Enablence Technologies Completes Acquisition of Wave7 Optics

OTTAWA, ONTARIO--(Marketwire - May 5, 2008) - (TSX VENTURE:ENA) Enablence Technologies Inc. ("Enablence" or the "Corporation") today announced that it has completed the acquisition of Wave7 Optics, Inc. ("Wave7"), a global provider of Fiber to the Home ("FTTH") systems that deliver voice, video, and data services, which was previously announced on April 14, 2008. Pursuant to an agreement and plan of merger, Enablence's wholly owned subsidiary, W7 Acquisition Corp. was merged into Wave 7, which is now a wholly-owned subsidiary of Enablence. The aggregate acquisition price was US$10.5 million and 2,078,385 common shares of Enablence. A portion of the shares are subject to an escrow arrangement and the shares are subject to certain statutory hold periods and contractual selling limits.

Enablence is also pleased to announce the appointment of Tom Tighe as President of Enablence's Networks Division (Wave7). Tom has previously held senior executive management positions at Antec, AT&T Network Systems and AT&T Bell Laboratories. Tom graduated in 1985 with a BSME from Wentworth Institute of Technology in Boston, MA and he holds an MBA from the University of Massachusetts.

"Wave7 deploys FTTH systems around the globe and we are extremely pleased to have them join Enablence. Every home connected with FTTH service requires an Optical Network Terminal (ONT) with an optical transceiver inside. Enablence is now in a position to be a supplier of both ONTs and transceivers," explained Arvind Chhatbar, the Chief Executive Officer of Enablence. "As part of our ongoing vertical integration strategy we acquired Albis Optoelectronics AG and ANDevices to secure supply of essential components used in transceivers," explained Mr. Chhatbar. "The acquisition of Wave7 provides us with an immediate channel to deploy our transceivers globally and dramatically broadens the addressable market for Enablence products that include all FTTH network elements. We are of the view that this acquisition will further leverage the strengths of our PLC technology, enhance Enablence's standing in the FTTH market and allow us to continue to expand our supply of transceivers and other PLC products to customers," added Mr. Chhatbar.

"While Wave7 Optics does not compete in the Tier 1 arena in North America, we are a recognized leader in FTTH systems globally. Our Trident7 Optical Access Platform is compatible with all modern standards: GPON, GE-PON and Point to Point. Synergies among the two companies will lead to faster development in next generation products as well as provide immediate cost savings to Enablence. Wave 7 has tremendous electronics capability and Enablence has strong optics capabilities. The combined entity will be uniquely positioned to build added value integrated subsystems that are inaccessible to pure component players due to the lack of system expertise and unattainable to pure system players due to the lack of integrated PLC components." says Tom Tighe, President of Enablence's Networks Division (Wave 7).

About Enablence Technologies Inc.

Using its Planar Lightwave Circuit (PLC) platform, Enablence Technologies is a developer of GE-PON, BPON and GPON products for the global rollout of Fiber-to-the-Home (FTTH). Enablence Technologies also has product offerings in the access, metro and long haul markets. Enablence now has three wholly owned subsidiary companies: Albis Optoelectronics AG, ANDevices, Inc. and Wave7 Optics Inc.

Forward Looking Statements

The statements in this press release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Corporation's expectations and projections. The TSX Venture Exchange has not approved this press release and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Enablence Technologies Inc.
    Arvind Chhatbar
    Chief Executive Officer