Sanders Signs Agreement to Create Optical Component Company
NASHUA, NH, 20-NOV-00 -- Sanders, a Lockheed Martin Company, has signed an agreement with three leading venture capital firms to create a new company based on Sanders-developed optical communications technology. The revolutionary technology represents a dramatic breakthrough in the speed and volume of data transfer in telecommunications, computing and internet applications. The team members include Goldman Sachs & Co., Kodiak Venture Partners, and Spectrum Equity Investors. As a leader in research, design and development of advanced technology for all branches of the armed forces, Sanders has developed key technologies applicable to the communications market. The new company, known as TeraConnect Inc., will produce a variety of optical and optoelectronic devices, which contain fundamental technology developed at Sanders.
The agreement between Sanders and the investors to form the new company was signed Nov. 9 and TeraConnect has begun operations. Financial terms of the agreement were not disclosed.
A core team of Sanders employees will transfer to the new company to design, develop and integrate the new devices. Dave Furneaux, Managing General Partner at Kodiak Venture Partners, will serve as Chairman of the TeraConnect Board of Directors.
Walter P. Havenstein, President of Sanders, said, This opportunity is another excellent example of Sanders' strategic orientation -- remaining firmly focused on our primary defense business, while exploiting the tremendous opportunities that our technology can bring to the commercial marketplace.
Sanders opto-electronics business has demonstrated technology leadership in both military and commercial markets, said Phil Cooper, Managing Director of Goldman Sachs' Equity Investment Group, TeraConnect's growth potential is unlimited and fills a significant void in the high-speed data transmission communications segment.
Goldman Sachs is a leading global investing banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and individuals.
Spectrum Equity Investors (www.spectrumequity.com) is a leading communications venture capital firm focused on investing both financial and intellectual capital in companies which power the Networked Economy.
Kodiak Venture Partners (www.kodiak.com) is a hands-on, back-to-basics, early stage venture investment firm led by seasoned entrepreneurs who accelerate ventures and build market leaders. Based in the Boston area, Kodiak concentrates on fundamental, technology-based new venture opportunities in the Communication and Internet Infrastructure markets.
Sanders is an operating company of the Lockheed Martin Corporation, and a major producer of aircraft self-protection systems and tactical surveillance and intelligence systems for all branches of the armed forces. Other major business areas include microwave, mission and space electronics; infrared imaging; and automated mission planning systems. Lockheed Martin, headquartered in Bethesda, Md., is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. The Corporation's core businesses are systems integration, space, aeronautics, and technology services.
As announced by the Lockheed Martin Corporation in July 2000, Sanders is one of several companies forming its Aerospace Electronic Systems segment that is planned for sale to BAE SYSTEMS North America. That transaction should be completed prior to the end of this year.
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