Palo Alto, CA – November 30, 2016
Woodside Capital Partners (WCP) proudly releases our latest overview and M&A activity report on the photonics industry.
Driven by our primary and secondary research efforts, our report will:
- Provide a brief orientation to photonics for communications.
- Review the photonics M&A market from 2005 to the present.
- Outline the key trends driving the current M&A market.
Key features of the photonics market are:
- Values in the photonics M&A market are recovering and expected to accelerate
- This is likely to drive investment quanta and valuations in photonics start-up and growth companies as investors realize there are superior gains to be garnered.
- The value of the photonics modules market segment is growing faster than the system market
- Much of the improved financial performance is driven by photonics penetrating the internal data centre connect market.
- The BOM for data centre interconnect is approximately 80% photonics, while that for the more mature Packet optical market is less than 50%
Future M&A trends in this sector
- Consolidating mega-mergers will continue among the larger players
- There will be an increase in M&A as innovation layer companies are acquired in a process of vertical integration
- Asian companies will increasingly acquire European and USA assets to secure technological advances and offshore their activities
- Some innovation layer photonics companies will seek to exploit the IPO route while markets are buoyant.
About Woodside Capital Partners
Woodside Capital Partners is a global, independent investment bank that delivers world-class strategic and financial advice to emerging growth companies in the technology sectors, as well as institutional technology research services marketed as techView. With a strong track record in M&A, strategic partnerships and private placements, Woodside Capital Partners has been providing worldwide investment banking services since 2001 with leading domain experience in software, Internet services, electronic communications and materials. Securities transactions are offered through Woodside Capital Securities LLC, a registered broker-dealer and member of FINRA (www.finra.org) and SIPC (www.sipc.org), and through Woodside Capital Partners UK LLP, a financial services firm authorized and regulated by the FSA (www.fsa.gov.uk). Woodside Capital Partners International LLC, Woodside Capital Securities LLC, and Woodside Capital Partners UK LLP are affiliated companies. More info is available at www.woodsidecap.com.
NOTICE: No information herein is a recommendation that any particular individual should purchase or sell any particular security in any amount or at all, and is not a solicitation of any offer to purchase or sell from or to any particular individual.
Rudy Burger, Managing Partner
Woodside Capital Partners