IPG Photonics Corporation announced that it has signed a definitive agreement to acquire the submarine networks division (SND) of Padtec SA, a communications equipment company based in Brazil.

Padtec SND is a provider of submarine networking technology and systems. The transaction has been approved by the Board of Directors of each company. Subject to satisfaction of customary closing conditions, the transaction is expected to close in the first quarter of 2019.

Based in São Paulo, Brazil, Padtec SND is a provider of submarine networking technologies, including optical line amplifiers (repeaters), as well as project planning, management, and execution services. Padtec SND's innovative undersea repeater technology and flexible business model align with the technical and business requirements of next-generation data center and Internet technology companies that are increasingly deploying submarine cable networks worldwide.

"The acquisition of Padtech SND enables IPG to leverage core pump laser and fiber amplifier technology to advance the market for submarine networking systems," said Ekaterina Golovchenko, IPG Photonics' Vice President of Telecommunication Systems. "The selection of Padtech SND by a large Internet service provider to manage and execute the deployment of a high capacity submarine cable network in Brazil underscores their advanced submarine networking technologies. Combining Padtech SND's submarine network capabilities with IPG's high-power optical amplifier, Raman pumping, and WDM systems technologies provides us with a leading-edge platform to capitalize on the growing number of undersea cable network deployments around the world."

SND has approximately 30 employees. The acquisition is not expected to be material to IPG's financial results for the fiscal year ended December 31, 2019.