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FTTH Suppliers TXP and CIG to merge


September 6, 2008
By Alyssa Dalton

TXP Corp.—an original design manufacturer (ODM) for the telecom industry—and Cambridge Industry Group (CIG), a privately held R&D and OEM supplier of FTTH (fiber-to-the-home) customer premise equipment (CPE) based in China, have signed a Memorandum of Understanding (MoU) to merge the two companies.

The
merger brings together two independent suppliers of passive optical
network (PON) optical network terminal (ONT) solutions to form what
they say is the world’s largest ODM and services business focused on
FTTH CPE.




The
combined company would offer a family of ONT solutions supporting an
array of indoor/outdoor PON ONTs, as well as residential gateways.
Furthermore, the consolidation of R&D and customer service
resources will give the combined company an enhanced capability, say
TXP and CIG, to better serve their global customer base while
continuing to develop next-generation FTTH CPE products.




In
addition, the merger is expected to allow the combined company to enter
a new phase of cost leadership in the FTTH access market, supporting
the transition to aggregated supply of GPON CPE.




“Together,
CIG and TXP are better equipped to address the total needs of our
global base of customers for GPON access,” said Michael C. Shores,
president and CEO of TXP.




TXP
generated about $11 million in revenue in 2007, up from $8.2 million in
2006. CIG generated about $10.2 million in revenue in 2007, up from
$1.9 million in 2006. The merger is expected to close before year-end.