Emcore Corporation based in Albuquerque, New Mexico USA, has agreed to sell its tunable laser and transceiver product lines to NeoPhotonics. NeoPhotonics purchased the product lines for $17.5 million, including $1.5 million in cash at closing and a $16 million promissory note. The price is subject to certain adjustments for pre-closing revenue levels, inventory, and net accounts receivable, which will increase or decrease the principal amount under the promissory note. The transaction, which is scheduled to close by early January 2015, is subject to customary closing conditions.
NeoPhotonics will acquire inventory, fixed assets, accounts receivable, and intellectual property from the sale. The transferred product lines include Emcore’s micro-ITLA, Tunable XFP transceiver, the External Cavity Laser (ECL)-based Integrable Tunable Laser Assembly (ITLA), and Integrated Coherent Transmitter (ICT) products for 10, 40, 100 and 400 Gigabit-per-second telecommunications networks. Emcore will retain its Broadband Fiber Optics products such as its Fiber-To-The-Premise (FTTP) transceivers, photodiodes and modulators, Indium Phosphide (InP)-based lasers, RF-over fiber satellite communications products, video transport equipment, Cable TV (CATV) transmitters and modules, and microwave and specialty photonics products (the “Broadband Business”).
Dr. Hong Hou, Emcore’s president and CEO said, “Following the closing of the previously announced sale of the Company’s space photovoltaics business and the sale of the tunable laser and transceiver product lines, we expect improved operating results going forward with renewed focus on our Broadband Business.”