NeoPhotonics Corporation, today announced that it has completed the acquisition of the tunable laser product lines of EMCORE Corporation for approximately $17.5 million.
Consideration for the transaction consists of $1.5 million in cash and a promissory note of approximately $16.0 million, which is subject to certain adjustments for inventory, net accounts receivable and pre-closing revenues, and will mature in two years. The note is subordinated to the Company’s existing bank debt in the U.S. and is secured by certain assets acquired in the transaction.
“EMCORE’s narrow linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for 100 Gigabits per second coherent transport systems, and this acquisition significantly expands our footprint in this rapidly growing segment,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “EMCORE’s External Cavity Tunable Laser has the narrowest linewidth in the industry, which we believe will become increasingly important for advanced modulation schemes at 400G and beyond. Combining this business into NeoPhotonics will allow us to provide customers with a full product suite that serves the full coherent market,” continued Mr. Jenks.
The acquisition is expected to be accretive to NeoPhotonics on a non-GAAP earnings per share basis by the second quarter of 2015. NeoPhotonics management will discuss the impact of this acquisition in the context of their outlook for the first quarter ending March 31, 2015 when it reports fourth quarter and full year 2014 results.