II-VI Incorporated based in Saxonburg, Pennsylvania USA announced the acquisition of Integrated Photonics, Inc., headquartered in Hillsborough, New Jersey.The cash transaction valued at about $45.0 million at closing also comes with a $2.5 million earn out. The business will be a division of II-VI’s Photonics segment.
Integrated Photonics Spun-out of Magneto-optic Materials Group of AT&T Bell Labs
In 2000, Integrated Photonics started as a spin-out of the magneto-optic materials group of AT&T Bell Labs. The company specializes in magneto-optic materials for directional components including optical isolators for the optical communications market. Transceivers with edge-emitting lasers and in optical amplifiers use embedded optical isolators based on magneto-optic materials.
According to II-VI, optical isolators are widely deployed in datacenters. Also, II-VI says that the rapidly growing demand for bandwidth for enterprise and consumer applications, such as cloud computing and emerging 5G wireless services are accelerating the adoption of magneto-optic materials.
“The magneto-optic materials engineered at Integrated Photonics are second to none as evidenced by their leading market position and their scalable production lines now running at full capacity,” said Dr. Chuck Mattera, president and CEO, II-VI Incorporated. “We are excited about the opportunity to scale the business to satisfy a strong and growing demand that currently exceeds the global supply.”
II-VI says that the magneto-optic materials from Integrated Photonics extend its portfolio of engineered materials and vertically integrated solutions to address emerging magnetic sensing applications and further penetrate the fiber laser market.