Continuing the hunt to expand its cable products portfolio, C-COR Inc. has entered into an agreement to buy up Elkridge, Maryland-based optical Ethernet transport provider Optinel Systems Inc. for $9.5 million plus assumption of certain liabilities.
The agreement calls for payment of an added $6 million in cash if Optinel sales objectives are reached in the 13-month period following the closing, which is expected by the end of 2005. If that is completed, Optinel will become part of C-COR's broadband communications products business segment, generating an estimated $7 million in net sales annually.
It is the latest in a string of acquisitions for State College, Pa.-based C-COR this year. In July, it closed a deal to buy bandwidth management outfit Stargus Inc., and in June it wrapped up a deal to buy Lantern Communications Inc., a provider of metropolitan area network packet-based transport gear. It also snapped up service acquisition systems provider Alopa Networks in May.
Optinel's optical technology portfolio, which includes Gigabit Ethernet transport modules, dense wave division multiplexing and coarse wave division multiplexing products, fits well with C-COR's aim to fill out its next-generation cable technology lineup, according to C-COR Chairman and CEO David Woodle.
"Optinel's technology fills out our next-generation, packet-based, optical transport solution and allows us the flexibility to meet the individualized business needs of our customers," he said, in a release. "In addition, Optinel brings to C-COR a product line that enables our customers to address the burgeoning business services market with rapid deployment and minimal capital investment."