News

8 February 2010

 

3S closes acquisition of Avensys

3S Photonics of Nozay, France, which manufactures laser chips, optical discrete modules and passive components for telecom networks, has closed its acquisition (announced on 17 December) of optical telecom component firm Avensys Inc (the sole operating subsidiary of Avensys Corp of Montreal, Quebec, Canada), including its two divisions Avensys Technologies and Avensys Environmental Solutions.

3S’ acquisition of Avensys Inc — and its 49% stake in ITF Laboratories Inc — is expected to result in a business, operating in both North America and Europe, with product synergies and a much greater ability to expand product lines and services beyond current capabilities.

With staffing of 200, Avensys realized turnover of $23m in the fiscal year to end June. Avensys Technologies designs and makes optical components, modules and fiber Bragg gratings for the telecom market as well as high-power devices, sub-assemblies and packaged fiber-based sensors for the industrial market. Avensys Environmental Solutions provides the Canadian market with environmental monitoring solutions and services for air, water, soil and geo-structures. ITF Labs develops integrated photonics solutions as well as components and fiber-based systems for fiber lasers and optical sensing applications.

The employees of Avensys Inc and ITF Laboratories will be retained, and the operations of Avensys Inc will remain at the same location in Montreal. 3S’ president & CEO Alexandre Krivine has been appointed president & CEO of Avensys Inc. Hassan Kassi remains president & CEO of ITF Laboratories, and will also remain chief operating officer of Avensys Inc.

The acquisition accords with the implementation of 3S' external growth strategy that it planned last July after raising €13m from three investment funds: €2.5m from Alto Invest, €450,000 from Midi Capital, and €10m from the French government’s Strategic Investment Fund (Fonds Stratégique d’Investissement, or FSI, formed in November 2008 to help key companies amid the financial crisis).

“Avensys is recognized as a world leader of fiber Bragg gratings and fiber laser technology in a broad range of markets,” claims Krivine. “This acquisition will also enable 3S Photonics to address the environmental market through the Avensys Solutions division,” he adds.

3S and Avensys aim to combine their global sales and marketing channels to leverage each firm's strength in their respective key accounts, enabling them to provide expanded customer service and products.

“We stand to benefit greatly from the synergies with 3S Photonics to step into the market of integrated optics, particularly in telecom and fiber laser markets,” reckons Kassi. “The transaction will place Avensys Inc in a better financial position and will enable increased investments in R&D.”

See related items:

3S to acquire optical telecom component firm Avensys Inc

3S maintains positive cash flow despite 10% annual revenue drop

3S raises €13m as investors back French fund

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