Alphawave IP Group plc (LSE: AWE) has announced the acquisition of Israeli ultra-high-speed chipmaker Banias Labs for $240 million. Based in Hod Hasharon, Banias Labs develops optical Digital Signal Processing (DSP) chips for data centers.
London-based Alphawave, which develops high-speed connectivity for the world's technology infrastructure said that the acquisition would strengthen its portfolio of optical DSP silicon products for data centers.
In parallel, Alphawave says it has negotiated a non-binding, multi-year purchasing framework with a North American hyperscaler that proposes a multi-year roadmap for the company to develop and sell a portfolio of optical products and DSPs, including coherent DSP technology from Banias Labs, with potential sales of over $300 million.
Alphawave CEO Tony Pialis said, "Banias Labs optical DSP technology provides a strong strategic advantage for Alphawave, strengthening our roadmap of DSP silicon solutions for data centers. 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 centers."
Founded in 2021, Banias Labs, which has remained in stealth, has developed DSP chips that utilize proprietary technology enabling ultra-high speed communications, together with physical layer security.
According to StartUp Nation Central, Banias Labs was founded by Avigdor Willenz, a veteran serial entrepreneur. He was the founder and CEO of communications chip company Galileo Technology which was sold to Marvell for $2.7 billion in 2000. He also founded semiconductor platform Annapurna Labs, which was sold to Amazon for $370 million in 2015, Leaba Semicnductor, which was sold to Cisco in 2016, and Habana Labs, which was sold to Intel for $2 billion in 2019.
Published by Globes, Israel business news - en.globes.co.il - on October 14, 2022.
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