In advance of the Citi Technology Conference on 9 June, engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA updated its investor presentation to note the sale of certain RF assets formerly owned by Anadigics (excluding the 6-inch GaAs wafer fab), as reported on a Form 8-K filed with the US Securities and Exchange Commission (SEC).
II-VI completed its acquisition of broadband wireless and wireline communications component maker Anadigics Inc of Warren, NJ, USA in March for about $78.2m. Anadigics became a subsidiary of II-VI, with its common stock being delisted and ceasing trading on Nasdaq. This followed an auction (initiated last November) in which II-VI Inc outbid initial bidder GaAs Labs LLC and then subsequently an unnamed Chinese bidder.
Also, on 1 February, II-VI completed its acquisition of EpiWorks Inc of Champaign-Urbana, IL, USA (which manufactures epitaxial wafers for optical components, wireless devices and high-speed communication applications).
The Anadigics RF assets have been sold for $45m in cash plus a $5m earn-out over 18 months (conditional on certain performance levels), coupled with various support and multi-year wafer processing supply agreements with the purchaser. II-VI intends to use the retained Anadigics GaAs fab for fabricating optoelectronics components such as vertical-cavity surface-emitting lasers (VCSELs).
II-VI notes that, as the total addressable market (TAM) for VCSELs is forecasted to grow from $0.8bn in 2015 to $2bn by 2020, it is ramping up its optoelectronics manufacturing capacity, with significant volume expected in second-half 2017.