To accelerate optical data center speed and scalability; union set to deliver five-fold expansion in cloud business.
Diverse photonics technologies company Lumentum is to acquire Hong Kong-headquarterd Cloud Light, which makes fiber optic equipment and automotive sensors, in a transaction valued at $750 million, subject to approvals.
The acquisition of Cloud Light is expected to accelerate Lumentum’s push into what it describes as “the fastest growing segments of the multibillion-dollar opportunity for optical modules used in cloud computing data center infrastructure”.
Cloud Light has a track record of developing high-speed connectivity solutions. Nearly all of Cloud Light’s more than $200 million revenue in the past 12 months was derived from 400G or higher speed transceiver sales. And in the latest trading quarter, over half of Cloud Light’s optical transceiver revenue was derived from 800G modules.
With the acquisition, Lumentum will be well-positioned to serve the growing needs of cloud and networking customers, particularly those focused on optimizing their data center infrastructure for the demands of AI/ML.