Banias Labs, an Israel-based optical Digital Signal Processing (“DSP”) chip developer for data centers, has been acquired by Alphawave IP Group, which develops high-speed connectivity solutions for technology infrastructure, for $240 million.
The acquisition is funded out of existing cash and additional financing. Alphawave has obtained $210 million of Senior Secured Credit Facilities, comprising a five-year $110 million Revolving Credit Facility and a five-year $100 million Term Loan. The Company’s Pro Forma net debt position after close is expected to be approximately $35 million. Alphawave expects to continue to have a strong cash flow generation profile which combined with the additional facilities provides a solid platform to navigate this period of accelerated business expansion.
Founded in 2020 by Avigdor Willenz, CEO Amnon Rom, Amri Levy, Alex Shinkar and Or Vidal, Banias Labs is a provider of coherent optical DSP semiconductor technology. Based near Tel Aviv, Israel, the key core technology leaders have worked together for over two decades and have a long track record of success in the silicon, IP, and communications segments of semiconductors. Banias Labs currently has approximately 50 employees the majority of whom are R&D focused.
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Alphawave said that Banias Labs’ technology will expand its addressable market and deepen Alphawave’s commercial partnership with a leading North American hyperscaler. Alphawave wants to become an industry leader with a broad portfolio of PAM4 and Coherent DSPs, in the most advanced technologies, and for all forms of Data Center connectivity.
Tony Pialis, President and Chief Executive Officer of Alphawave said, “Banias Labs optical DSP technology provides a strong strategic advantage for Alphawave, strengthening our roadmap of DSP silicon solutions for data centers. This acquisition enhances our portfolio of electrical and optical solutions in the most advanced process technologies. The multi-year purchasing framework includes coherent optical solutions, and with the Banias acquisition, Alphawave is expanding its total addressable market by delivering next generation coherent optical solutions for the most advanced data centers.”