Solectron to acquire optical assembly company

Solectron, Milpitas, Calif., intends to boost its optical assembly services with the addition of Iphotonics Inc., a privately held company in Glen Burnie, MD, that specializes in design, test and manufacturing of optical products. Financial terms of the deal were not disclosed.

The deal marks Solectron's second acquisition plan this month. Two weeks ago, Solectron officials revealed plans to purchase C-MAC Industries Inc., a mid-tier Montreal, Canada contractor for $2.7 billion. Iphotonics' purchase would allow Solectron to compete better with other EMS companies that have enhanced their optical capabilities over the past two years.

Last year, EMS providers accounted for less than $4 billion of the $30 billion fiber optic equipment market, which is projected to generate revenue of $90 billion in 2003.

Iphotonics was established in 1999 and provides optical assembly for prototypes, along with design, packaging, splicing and test services. The company has 200 employees and a 66,000 -sq.-ft. manufacturing facility in Maryland and a 10,000-sq.-ft. engineering center in Fremont, Calif.