In an effort to create more focused enterprises, JDSU this week announced plans to split into two stand-alone companies.
In a statement on the company’s website, it said one firm will focus on optical components and commercial lasers (CCOP). JDSU said this company will be positioned for growth and will work at expanding cloud networks and high-capacity data centres.
The second firm will be a network and service enablement company (NSE), focusing on the industry’s transition to software-designed networks. JDSU’s optical security business will continue operating within this new company.
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The company said splitting into two firms will give shareholders clear investment opportunities in growth areas. It said the deal should be complete by the third quarter of the 2015 calendar year and is expected to reduce expenses by about $50 million.
“We believe two fundamentally focused companies best position us to stay ahead of the accelerating pace of technology change and to compete even more effectively across the unique markets we serve today,” said JDSU president and CEO Tom Waechter in the statement.
Mr. Waechter will remain as CEO with the NSE company. JDSU executive vice-president Alan Lowe is CEO-designate of the CCOP company.
Mr. Waechter said Mr. Lowe is the right candidate for the position.
“He has built a strong team and has a solid track record of execution during his seven years at JDSU. Alan has a deep understanding of and familiarity with CCOP’s markets and customers. We are confident he will lead this new company to even greater success,” said Mr. Waechter.
