NeoPhotonics of San Jose, California USA, reported that it has definitively agreed to sell its Access and Low Speed transceiver product lines (known as its Low-Speed Business) to APAT Optoelectronics Components Co., Ltd. of Shenzhen, China. APAT Optoelectronics is a designer and manufacturer of optical sub-assemblies for telecom and datacom markets.
NeoPhotonics plans to sell assets including the intellectual property, inventory, and fixed assets for its PON products including GEPON and GPON transceiver products at up to 10G/s data rates, plus 10G/s and below telecom, bidirectional, and specialty transceiver products.The total transaction including post-closing payments is valued at about $26.4 million.
The transaction value is comprised of an equivalent of $25.0 million purchase price plus an equivalent of $1.4 million for APAT to pay as certain transition services are delivered. The asset acquisition agreement is subject to customary closing conditions and is expected to close in January 2017.
Commenting on the transaction, Tim Jenks, NeoPhotonics Chief Executive Officer, stated, “After a comprehensive evaluation of the alternatives available for the Low-Speed Business, we believe this transaction will best benefit our shareholders, customers, and employees. This transaction underscores our objective to focus our efforts on growing high-speed optical networking products and solutions based on our advanced hybrid photonic integration technology platform to meet customer demand.” Jenks continued, “We believe the Low-Speed Business will benefit from APAT OE’s expertise in Access and PON products while continuing to provide quality products, support, and services to customers.”
“We are excited to have the NeoPhotonics low-speed product team join APAT, and look forward to having more products to sell to our largest customers as well as the opportunity this transaction creates for us to gain many new customers,” commented Rex Gu, Founder, and CEO of APAT OE.