Alphawave IP Group plc, a global leader in high-speed connectivity for the world's technology infrastructure today announced the acquisition of Banias Labs, an Israel-based optical Digital Signal Processing ("DSP") chip developer for data centers for approximately US$240 million. The acquisition strengthens Alphawave's roadmap of optical DSP silicon products for data centers, a core high growth market for Alphawave.
Alongside the acquisition of Banias Labs, Alphawave has negotiated a non-binding, multi-year purchasing framework with a leading North American hyperscaler that proposes a multi-year roadmap for Alphawave to develop and sell a portfolio of optical products and DSPs, including coherent DSP technology from Banias Labs, with sales potentially ramping to over US$300 million.
"Banias Labs optical DSP technology provides a strong strategic advantage for Alphawave, strengthening our roadmap of DSP silicon solutions for data centers. This acquisition enhances our portfolio of electrical and optical solutions in the most advanced process technologies. The multi-year purchasing framework includes coherent optical solutions, and with the Banias acquisition, Alphawave is expanding its total addressable market by delivering next generation coherent optical solutions for the most advanced data centers."
Tony Pialis, President and Chief Executive Officer of Alphawave
John Lofton Holt, Executive Chairman of Alphawave said: "We are pleased to welcome the talented Banias Labs team to Alphawave. This acquisition aligns with the strategic priorities that we articulated at our IPO, expanding our technology portfolio in high-speed connectivity to support long-term growth. Coherent optics will enable the next level of efficiencies in data center communications, addressing the increasing bandwidth and power efficiency requirements."
About Coherent Optics
Coherent optics is the next evolution of optical solutions, the cornerstone of the industry's efforts to achieve 800G and 1.6T Ethernet speeds while maintaining the required reaches inside and outside of data centers and also significantly reducing power consumption. Coherent technology is predominantly used today in long reaches of over 100km connecting data centers and in telecommunications. Banias Labs' optical DSP technology strengthens Alphawave's optical products roadmap by targeting a growing opportunity for coherent optical technology intra-data center, as shorter reaches adopt this technology.