Optical Networking Featured Article


IDT Buys GigPeak to Improve Communications Network


February 22, 2017

Integrated Device Technology has agreed to an acquisition deal with GigPeak. The optical interface provider was reportedly valued at 250 million dollars, and the company will become its own division of IDT.

GigPeak already has a strong presence working in cloud based data centers, as well as in the communications and aviations markets. IDT believes that its interface has many other potential applications as well, and that its reach in inner connected products can help facilitate that spread. In a statement announcing the acquisition, IDT called GigPeak “a highly regarded optical interconnect product and technology business that is complementary to our leadership position in real-time interconnect products.”

“GigPeak is a leader in optical, RF, and video transport and is a perfect fit for IDT,” added Gregory Waters, the President and CEO of IDT. “Their products, technology and culture all complement and represent an acceleration of our strategy. We also gain an exceptional group of talented people and valuable intellectual property with the GigPeak team.”

This acquisition could prove to be a very profitable one for IDT. Expert analysts project that with GigPeak as a part of its portfolio, IDT should

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see an additional 16 million dollars in revenue every quarter. The optical interface that GigPeak offers helps bring greater accessibility to the IDT product suite, making it more accessible to a greater range of users.

The fact that IDT, with its already large suite of services and products, worked so hard to acquire an optical interface provider, speaks to how important the user-facing end of technology is becoming in today’s day and age. Technology has progressed so far that, in many industries, there are a number of software developers that can provide similar services. The differentiating factor can often be the deciding factor in selecting one provider over another. IDT is aware of this truth, and thus has made it a central part of its development plan to acquire an optical service provider to help improve its user facing interface.




Edited by Alicia Young









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