CIP Technologies acquired by Huawei
Transaction bolsters Huawei’s UK R&D capabilities with launch of UK research centre
Huawei completes acquisition of CIP Technologies
Ipswich, Jan 25, 2012: Huawei, a leading global information and communications technology (ICT) solutions provider, today announced the acquisition of the Centre for Integrated Photonics Ltd (CIP), a world-leading photonics research laboratory, from the East of England Development Agency (EEDA).
CIP will significantly deepen the optical research and development (R&D) capabilities of Huawei and demonstrates the company’s ongoing commitment to R&D in the UK. The CIP R&D team, which is located in Ipswich, will be retained by Huawei and will form the core of the new Huawei UK R&D centre, part of Huawei’s global R&D network.
CIP has a reputation as a world-class incubator in fibre optic transmission and carries out world-leading cutting edge research work in this hi tech area. Huawei will continue to invest in fibre optic R&D to ensure that CIP remains an innovator in this important technology sector.
EEDA’s Chairman, Professor Will Pope said “This is a tremendous investment success story for EEDA, which acquired CIP in 2003 from its then American owners to save it from closure. EEDA’s mission was to ensure that a key UK technology company was not lost from the hi tech business base of the East of England.”
“Following re-structuring and investment in the business we’re very pleased to find such a prominent acquirer for the company where the skills of the staff and the accumulated know-how are to be exploited on an international scale. The agreement with Huawei follows a rigorous and competitive tender process which has generated a positive return for the taxpayer, has demonstrated yet again the value for UK plc of EEDA’s hi tech investments in the East of England and I am confident we have made the right decision for CIP and its employees. Huawei is a world-class organization and their involvement in funding R&D in the region is most welcome”, Pope said.
“As a world-leading ICT solutions provider, Huawei aims to build up its business in global markets and will continue to increase investment in the UK, reaffirming its commitment to customers, suppliers and business partners,” said Victor Zhang, CEO of Huawei UK. “Currently, Huawei has six research facilities in Europe. I’m confident that CIP’s strong research abilities and its talented staff will further extend our European research presence to the UK, a key and important market to the company.”
CIP’s CEO, Peter Wharton, added, “We had a good level of interest from potential acquirers, but the management team and staff overwhelmingly backed EEDA’s view of the Huawei bid because we believe its industry-leading R&D capabilities and investment in CIP will lead us to have many more significant achievements in the future. The last six months of working closely with Huawei has more than met our expectations, building the foundations for an excellent working relationship.”
EEDA was advised in the transaction by the London office of Woodside Capital Partners.
Huawei has invested continually in the UK over the past ten years. In 2011, the company announced plans to double its UK workforce to 1,000 in addition to opening a European design centre for its mobile device
Huawei is a leading global information and communications technology (ICT) solutions provider. Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population. For more information, visit Huawei online: http://www.huawei.com
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EEDA is the Regional Development Agency covering the East of England. It has worked across the six counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk. Its mission was to improve the economy of the East of England whether by helping businesses through the recession, supporting people to be the best they can or breathing new life into places. An independent report found that for every GBP 1 EEDA spent, a mid-point return of GBP 4.75 moving to a full cycle out-turn of approximately GBP 8 was generated for the region’s economy.
The government has announced that EEDA along with the other RDAs in England and Wales will close by March 2012. The provision of economic development and support for business and the regions is to be provided through a range of new national and local arrangements.
About CIP Technologies
CIP Technologies is the trading name of The Centre for Integrated Photonics Ltd, a world-renowned developer of advanced photonic hybrid integrated circuits and InP-based opto-electronic modules for the communications and renewable energy markets. With integrated state-of-the-art research facilities, as well as strategic partnerships with volume packaging providers, CIP Technologies develops the photonic products of tomorrow. CIP Technologies’ uniquely broad range of competencies is based on world-renowned research, and includes network architecture design and analysis. For more information visit www.ciphotonics.com
About Woodside Capital
Woodside Capital Partners UK LLP, at Ibex House, 42-47 the Minories, London, EC3N 1DY, is the European arm of Woodside Capital Partners International LLC an investment banking firm. The company has offices in Silicon Valley and London, and specializes in mergers and acquisitions and strategic finance for growth stage companies in the technology and life sciences sectors. More information is available at www.woodsidecap.com or by calling +1.650.391.2075 (US) or +44 2081445139 (UK).
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