Group\u2019s cash resources and debt will finance the acquisition, for an amount of \u20ac10 million in cash. To strengthen its balance sheet, but subject to favorable market conditions, the Group plans to carry out a capital increase by private placement over the coming weeks, for an amount capped at 10% of the capital stock.<\/p>\n\n\n\n
OTN technology is used to switch data traffic over optical fibers, significantly optimizing network bandwidth utilization. The OTN technology developed by Padtec will allow EKINOPS to meet growing market demand for this type of technology. This strategic acquisition will enable the Group to become a leader in this field and deliver additional revenue from new OTN products starting in 2020. It is estimated that over 40% of the optical network market uses OTN solutions.<\/p>\n\n\n\n
The rapid growth of data traffic on the Internet, which is fueled by new services such as big data, cloud computing and 5G, requires the construction of new networks providing higher bandwidth (200G-400G) and meeting strict requirements in terms of latency, synchronization and flexibility.<\/p>\n\n\n\n
OTN technology provides a solution built around a scalable architecture, making it possible to (i)<\/strong> rapidly increase switching capacity and (ii)<\/strong> support Packet Optical Transport (network layer 2). By developing a new generation of OTN products, EKINOPS will meet the requirements of mobile operators, in particular for their 5G networks.<\/p>\n\n\n\n With this acquisition, EKINOPS expects to be able to offer a complete OTN\/DWDM solution for optical networks from early 2020, enabling flexible data traffic and support for the evolution of data speeds and protocols transmitted over 200-400G modulated optical wavelengths, eventually reaching 1Tbps (terabit per second).<\/p>\n\n\n\n The new product line will enable EKINOPS to target the major operator core networks market segment with the objective to triple its optical transport product sales within 5 years.<\/p>\n\n\n\n Through this transaction, EKINOPS will acquire OTN technology and an R&D team comprising 25 engineers based in Campinas, near Sao Paulo (Brazil) for \u20ac10 million in cash. Brazilian operations will be overseen by Jean-Luc Pamart, co-founder of EKINOPS and VP of R&D for optical transport.<\/p>\n\n\n\nMain transaction terms<\/h3>\n\n\n\n