Emcore Corporation in Definitive Agreement to Acquire Intel's Enterprise and Storage Optical Assets
Source/Type: Company News Releases

April 10, 2008... Albuquerque, New Mexico USA -- Emcore Corporation announced on Thursday that the company has entered into a definitive agreement with silicon chip manufacture Intel Corporation to acquire the enterprise and storage assets of Intel's Optical Platform Division as well as the Intel Connects Cables business. Under the agreement, Emcore will issue 3.7 million shares of restricted stock for the acquisition, with certain adjustments based on Emcore's stock price twelve months after the closing of the transaction.

The assets covered in the agreement include intellectual property, inventory, fixed assets and technology relating to optical transceivers for enterprise and storage customers, as well as optical cable interconnects for high-performance computing clusters.

The acquisition is expected to further enhance Emcore's presence in the optical communications market segments, especially in the areas of 10 Gigabit Ethernet and storage area network transceivers. It will also allow Emcore to provide a more complete product offering to a broad range of customers.

The sale of the optical-related assets is expected to enable Intel to focus its investments on core communications and embedded market segments in line with its platform strategies.

Emcore has projected that the acquisition will add USD45m in revenue for the next 12 months, increase gross margin from 23% to 29% and be accretive to earnings.

The acquisition is expected to close in the second quarter of 2008.

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