Wednesday, January 25, 2012

Huawei completes acquisition of CIP Technologies

IPSWICH, UK: Huawei, a leading global information and communications technology (ICT) solutions provider, 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 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, Prof. 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.”

“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.

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