The deal marks Solectron's second acquisition plan this month. Two weeks ago, Solectron officials revealed plans to purchase C-MAC Industries Inc., a mid-tier Montreal, Canada contractor for $2.7 billion. Iphotonics' purchase would allow Solectron to compete better with other EMS companies that have enhanced their optical capabilities over the past two years.
Last year, EMS providers accounted for less than $4 billion of the $30 billion fiber optic equipment market, which is projected to generate revenue of $90 billion in 2003.
Iphotonics was established in 1999 and provides optical assembly for prototypes, along with design, packaging, splicing and test services. The company has 200 employees and a 66,000 -sq.-ft. manufacturing facility in Maryland and a 10,000-sq.-ft. engineering center in Fremont, Calif.