NEC Eluminant Technologies Inc., a private Chantilly-based fiber-optic equipment maker, announced yesterday that it was acquired by Zhone Technologies Inc. of Oakland, Calif.
Terms were not disclosed. Eluminant will change its name to Zhone, and its management will be integrated into the company, although some of the administrative positions in the Virginia office will be eliminated, said David Markowitz, Zhone vice president of marketing. He said Zhone hasn't decided whether to keep the Chantilly office.
Eluminant was spun off from NEC USA Inc., the American subsidiary of Japanese electronics giant NEC Corp., in 1998. The company makes devices that telecommunications carriers install in their networks to provide high-speed Internet access over fiber-optic cable.
Markowitz would not discuss revenue figures for either company, nor would he say how many people they employed. David M. Montanaro, Eluminant's chairman and chief executive, said in 2001 that Eluminant employed 170 people that year, and had revenue of $105 million in 2000.
Zhone is a private company, founded in 1999, that dropped a plan to raise $345 million by selling shares to the public in 2001. The company's revenue for the first nine months of 2000 was $60.5 million, and it employed 490 people that year, according to documents filed with the Securities and Exchange Commission. It reduced its workforce to 340 in 2002, according to Hoover's, a business information service.
Eluminant and Zhone "have been in the same marketplace, but we were stronger on the fiber-optic side," while Zhone focuses on making networking equipment that works over copper wires, said Jim Holley, Eluminant's senior vice president of marketing.
If the Federal Communications Commission changes regulations governing local telecommunications service, as is being considered, telephone companies are likely to start investing more in high-speed Internet equipment and that made Eluminant attractive to Zhone, Holley said.