Emcore Corp of Alhambra, CA, USA, which provides compound semiconductor-based optical components, subsystems and systems for the broadband and specialty fiber-optics market, has completed the sale of its tunable laser and transceiver product lines (announced on 23 October) to NeoPhotonics Corp of San Jose, CA - a vertically integrated designer and manufacturer of both indium phosphide (InP) and silica-on-silicon photonic integrated circuit (PIC)-based modules and subsystems for high-speed communications networks.
In connection with the closing of the transaction, Emcore received $1.5m in cash and a promissory note from NeoPhotonics for $16m. The promissory note will mature two years from the closing date of the transaction, subject to repayments under certain circumstances, and is secured by certain of the assets sold to NeoPhotonics in the transaction.
The purchase price is subject to certain post-closing adjustments for inventory, net accounts receivable and pre-closing revenue levels, which will increase or decrease the principal amount of the promissory note as applicable.
The assets sold include intellectual property for the external-cavity laser (ECL)-based integrable tunable laser assembly (ITLA), micro-ITLA, tunable XFP transceiver and integrated coherent transmitter (ICT) products for 10, 40, 100 and 400Gb/s telecoms networks. Emcore retains its broadband fiber-optics product lines including cable TV (CATV) transmitters and modules, fiber-to-the-premise (FTTP) transceivers, indium phosphide (InP)-based lasers, photodiodes and modulators, RF-over-fiber satellite communications products, video transport equipment, and microwave and specialty photonics technologies for defense and homeland security applications (i.e. the firm’s broadband business).
“Emcore’s narrow-linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for 100Gb/s coherent transport systems, and this acquisition significantly expands our footprint in this rapidly growing segment,” comments NeoPhotonics’ chairman & CEO Tim Jenks. “Emcore’s external-cavity tunable laser has the narrowest linewidth in the industry, which we believe will become increasingly important for advanced modulation schemes at 400G and beyond,” he adds. “Combining this business into NeoPhotonics will allow us to provide customers with a full product suite that serves the full coherent market.” The acquisition is expected to be accretive to NeoPhotonics on a non-GAAP earnings per share (EPS) basis by second-quarter 2015.
Previously, on 10 December, Emcore completed the sale of its Space Photovoltaics business (announced on 17 September) to SolAero Technologies Corp (an affiliate of private equity firm Veritas Capital) for $150m.
