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Transmode Systems AB and Lumentis AB, two European private telecommunication
companies, announced today that they will merge to create what they described as "a new global force
in optical networking." The companies, which are both headquartered in
Stockholm will form a new company under the Transmode name to
further penetrate the growing Metro wavelength division multiplexing (WDM) global equipment market.
Through the merger, which is effective immediately, Transmode has become
a major supplier to telecommunications operators, MSOs, systems integrators,
enterprises, utilities, public institutions and OEM partners world-wide.
Overthe past five years, both Transmode Systems and Lumentis report rapid growth and
the new organization now claims more than 100 customers globally and an established
network of value-added resellers.
Transmode will offer a broad portfolio of optical networking
products and service based on WDM to both network operators and enterprises. The company claims its products address requirements from regional
networks, through metro core and access networks, all the way down to the
customer premises.
"Customers of both companies will benefit from a greater choice of solution
and dealing with an organization with global operational strength," Isaac Olasoko, Transmode Systems' CEO, who will also lead the new company, said. "Because
the products of both companies are complementary, we will be able to
serve both a broader base of customers, particularly opportunities with
larger carriers, and a broader set of applications within those customers'
networks."
Anders Lundberg, CEO of Lumentis, added, "Together, we are
building on the strong heritage of optical technology expertise that Sweden
is renowned for internationally."
Both companies bring financial resources to the merger.
Transmode closed a $15 million financing round last December and Lumentis
raising $9 million in June 2004. The total investment to date in both companies is
$81 million.
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