Paul van Gerven
9 March

Effect Photonics has acquired Viasat’s optical DSP and forward error correction (FEC) technology, including an engineering team. The Eindhoven-based company has also secured an additional 20 million dollars in series-C funding, bringing the total to 63 million dollars. Pursuant to the DSP acquisition agreement, Viasat will be joining Effect Photonics’ supervisory board and hold a minority interest in the company.

Effect Photonics develops and markets optical transceivers for 5G and data center applications. Its products are based on a single photonic integrated circuit (PIC), featuring dense wavelength-division multiplexing (DWDM) functionality, which increases capacity, and tunable lasers, which enable automatic channel tuning.

Effect Photonics 2
Credit: Effect Photonics

Viasat is a Nasdaq-listed communications company with a long track record in DSP and FEC technology. Absorbing these activities “means that Effect Photonics is the only independent vendor able to deliver both the active optical components and the DSP. This will offer the market more choice and the ability to source superior solutions,” comments Effect CEO James Regan.

“Given the trend of the fiber-optic communications industry towards consolidation to provide vertically integrated end-to-end solutions, we believe that combining Viasat’s assets and capabilities with the unique integrated-photonics capabilities of Effect Photonics will create substantially more market opportunities and better products,” says Russell Fuerst, business area leader and vice president at Viasat.

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