Hon Hai subsidiary Hongteng Precision announced the completion of the acquisition of Avago's fiber optic division
On January 26, Foxconn Interconnect Technology, a subsidiary of Hon Hai Technology Group, announced the completion of the acquisition of the optical module business unit and related assets of Avago.
The news of the acquisition began in early October 2015. At that time, there were market rumors that the two parties had entered the negotiation stage. It was expected that the acquisition would be finalized in early November 2015.
Hongteng Precision stated that through this acquisition, it will be able to comprehensively meet customers' needs for copper and optical Internet technology-related products for application in the next generation of network and cloud infrastructure systems.
This will help Hongteng Precision move from traditional copper wires to optical fibers and lay out the optical communication industry.
Philip, senior deputy general manager of Hongteng Precision’s Optical Communication Technology Division Gadd said that he is very excited to integrate these R&D and manufacturing capabilities into operational projects, which will help generate new synergies and opportunities and strengthen Hongteng’s leadership position and contribution in this area.
It is reported that Avago will license the design and technology to Hongteng Precision as agreed. As for Avago’s approximately 900 employees in related departments, including engineers and marketing staff located in San Jose, California, Pennsylvania, and Singapore Employees, as well as the manufacturing team in Mexico, will be transferred to Hongteng Precision Optical Components Unit. In the future, Avago will act as the exclusive supplier of Hongteng Precision Optical Components.
