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JDS, E-Tek Dynamics Merge to Improve Optical Networking

The consolidation of the optical networking market continued today when JDS Uniphase Corp. and E-Tek Dynamics Inc. signed a merger agreement worth about $15 billion, based on January 14 closing stock prices.

In addition to the merger, the two companies also announced the signing of a mutual supply agreement in order to immediately increase the supply of certain products to the companies' customers.

JDS Uniphase (www.jdsunph.com) and E-Tek (www.e-tek.com) decided to merge in response to what they perceive as rapid growth of the telecommunications market. The companies hope to take advantage of each other's expertise. JDS Uniphase specializes in the manufacture and distribution of active and passive components, modules and subsystems, connectivity products, research instruments, and commercial lasers for the fiber optic networking market.

E-Tek manufactures passive components and modules for fiber optic systems. JDS Uniphase manufactures largely for the telecommunications and cable television markets. E-Tek manufactures for terrestrial and submarine long-haul fiber optic networks, and short-haul networks such as metropolitan area networks (MANs). -- Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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