In 1999, JVP met an experienced team with a revolutionary idea to create high speed optical component connectivity out of indium phosphate using revolutionary ex-military technologies. Uzi Koren, Yair Alpern and Micha Zimmerman sought JVP’s founding support to establish CyOptics, with a view to create world-class solutions for very high-end fiber-optic communications equipment.

Built by founders of the industry and leveraging numerous in-organic acquisitions, CyOptics developed a unique toolbox of optical integration devices and manufacturing capabilities. Thus, supporting its leadership position in the supply of sub-components to the optical communications and defence/avionics markets.

Over the years, CyOptics made five acquisitions to address evolving market needs. The second pivotal acquisition CyOptics made, was the purchase of Lucent Optical Labs for the price of $25 million. The acquisition of Lucent Optical Labs allowed CyOptics to establish their headquarters and production in the United States. The Lucent purchase was part of an aggressive M&A strategy in the space, led by JVP. In the early years, the company grew exponentially through these acquisitions.

The turnaround came in 2010, when the company started generating substantial revenue growth, and the exponential demand for bandwidth as the world moved to cloud, gaming and video based content. JVP strongly believed in this potential and started to actively follow opportunities to increase its stake. Over the next two years, revenues would close to triple with a forecast to reach $260 million by the year-end of 2013. Not only were its revenues high, but its customer list included a slew of fortune 500 companies and leading corporations such as: Huawei, ZTE, Mitsubishi, Nokia, Siemens Network, L3 Communications, Cisco, Alcatel-Lucent, and Lockheed Martin.

In parallel, during that same inflection year of 2010, many of the company’s historic investors were seeking liquidity. Large American Private Equity groups stepped in, bidding to buy out these investors as well as injecting capital. At the time, JVP continued to stoutly believe in the company, and encouraged the company’s board to pass on third party offers and lead an internal round. In January 2011, JVP led a $50 million internal, mostly secondary, round in this rapidly growing and profitable company. Leading this round was a key inflection point also for JVP as it identified the opportunity to increase its stake in the company from 11% to over 50%.

In June of 2013, CyOptics was acquireD by Singapore-based Avago Technologies for $440 million. JVP, which held 53% of the company at its exit, generated significant returns for its investors on this single transaction.

CyOptics provides Indium Phosphide optical chips and component technologies for the data communications and telecommunications markets

2013 (Avago)