The deal is worth $240mn and will help to strengthen Alphawave's roadmap of optical DSP silicon products for data centres, a core high growth market for the company.
Alphawave has also announced that it has negotiated a non-binding, multi-year purchasing framework with a 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 $300mn.
Commenting Tony Pialis, President and Chief Executive Officer of Alphawave said, "Banias Labs optical DSP technology provides a strong strategic advantage for Alphawave, strengthening our roadmap of DSP silicon solutions for data centres. 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 centres."
"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 centre communications, addressing the increasing bandwidth and power efficiency requirements,” said John Lofton Holt, Executive Chairman of Alphawave.
Coherent optics are the cornerstone to the industry's efforts to achieve 800G and 1.6T Ethernet speeds while maintaining the required reaches inside and outside of data centres and also significantly reducing power consumption.
Coherent technology is predominantly used today in long reaches of over 100km connecting data centres and in telecommunications.
Banias Labs' optical DSP technology will be used to target a growing opportunity for coherent optical technology intra-data centre, as shorter reaches adopt this technology.
In addition, Alphawave said that it believes the significant engagement from a leading North American hyperscaler reflects the importance of this technology for the future of data centre connectivity.
