Alphawave IP Acquires Optical DSP Chip Developer Banias Labs
LONDON and HOD HASHARON, Israel, Oct. 13, 2022 -- Alphawave IP, a global leader in high-speed connectivity for the world's technology infrastructure, today announced the acquisition of Banias Labs, an Israel-based optical Digital Signal Processing ("DSP") chip developer for approximately US$240 million. The acquisition strengthens Alphawave's roadmap of optical DSP silicon products for data centers, a core high growth market for Alphawave.
Alongside the acquisition of Banias Labs, Alphawave has negotiated a non-binding, multi-year purchasing framework with a leading North American hyperscaler that proposes a multi-year roadmap for Alphawave to develop and sell a portfolio of optical products and DSPs, including coherent DSP technology from Banias Labs, with sales potentially ramping to over US$300 million.
"Banias Labs optical DSP technology provides a strong strategic advantage for Alphawave, strengthening our roadmap of DSP silicon solutions for data centers," explained Tony Pialis, President and CEO of Alphawave. "This acquisition enhances our portfolio of electrical and optical solutions in the most advanced process technologies. The multi-year purchasing framework includes coherent optical solutions, and with the Banias acquisition, Alphawave is expanding its total addressable market by delivering next generation coherent optical solutions for the most advanced data centers."
John Lofton Holt, Executive Chairman of Alphawave said: "We are pleased to welcome the talented Banias Labs team to Alphawave. This acquisition aligns with the strategic priorities that we articulated at our IPO, expanding our technology portfolio in high-speed connectivity to support long-term growth. Coherent optics will enable the next level of efficiencies in data center communications, addressing the increasing bandwidth and power efficiency requirements."
Alphawave expects the ramp of new Optical products to start in 2024 and profitability to improve from 2023 levels as products go into high-volume production and generate additional revenue. The company anticipates additional revenue synergies given the complementary nature of the technology and its contribution to the product roadmap. Alphawave reiterates its stand-alone outlook. Further details on the pro forma 2023 outlook and the long-term financial model will be communicated at the upcoming capital markets day on 13 January 2023.
Trading for Q3 2022 has been strong and Alphawave will publish its trading update for Q3 2022 next week, on 17 October 2022.
Source: Alphawave IP
