Nov 20 2014
M/A-COM Technology Solutions Holdings, Inc. (MACOM), a leading supplier of high performance RF, microwave, and millimeter wave products, today announced it has entered into a definitive agreement to acquire BinOptics Corporation, a leading merchant provider of Indium Phosphide lasers for Data Centers, Mobile Backhaul, Silicon Photonics and Access Networks, in an all-cash transaction valued at $230 million, subject to customary post-closing adjustments.
Expected highlights of the transaction include:
- Accretive to MACOM's gross margin and earnings per share starting in the first full quarter of combined operations.
- Broadens MACOM's optical portfolio with highly differentiated edge-emitting and surface-emitting Fabry Perot and DFB lasers.
- Brings proprietary Etched Facet Technology (EFT) for lasers that enable compelling wafer-scale economics in both device manufacturing and testing.
- Doubles MACOM's Serviceable Addressable Market (SAM) within the optical component market.
- Expands growth opportunities and addressable market in Data Center networks, including Silicon Photonics.
Commenting on the transaction, John Croteau, President and Chief Executive Officer stated, "This acquisition further extends MACOM's preeminent position in what we expect will be a strong secular growth driver for many years to come. We believe BinOptics' wafer-scale model for Indium Phosphide lasers will play perfectly to our strength in compound semiconductor manufacturing, allowing us to quickly address what is currently a supply-constrained part of the optical component industry. BinOptics' business model is consistent with our gross margin and operating margin aspirations, and we expect the transaction to be accretive to non-GAAP gross margin and EPS within the first full quarter of combined operations."
"Furthermore, this acquisition underscores MACOM's strategy to expand our market and growth opportunities through M&A. We have a successful track record of integrating acquisitions, both large and small, to expand our addressable market, while also achieving cost synergies for improved profitability and margin expansion."
MACOM expects to fund the purchase price of the acquisition from a combination of cash on hand and incurrence of additional indebtedness from its existing $100 million revolving credit facility.
Closing of the acquisition is subject to the satisfaction of customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. MACOM expects the transaction to close by the end of its first fiscal quarter of 2015.
Goldman, Sachs & Co. acted as exclusive financial advisor and Perkins Coie LLP acted as legal counsel to MACOM. Raymond James & Associates, Inc. acted as exclusive financial advisor and Bond, Schoeneck & King, PLLC as legal advisor to BinOptics.
A presentation with further information on the transaction is available on MACOM's investor relations website at: http://ir.macom.com/
Source: http://www.macom.com/