Temescal

Semigas

CLICK HERE: free registration for Semiconductor Today and Semiconductor Today ASIACLICK HERE: free registration for Semiconductor Today and Semiconductor Today ASIA

Join our LinkedIn group!

Follow ST on Twitter

IQE

18 January 2017

NeoPhotonics completes sale of Low Speed transceiver business to APAT Optoelectronics

NeoPhotonics Corp of San Jose, CA, USA (a vertically integrated designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems for high-speed communications networks) has completed the sale of its Access and Low Speed transceiver product lines (announced on 19 December) to APAT Optoelectronics Components Co Ltd (APAT OE) of Shenzhen, China, a designer and manufacturer of optical sub-assemblies for telecom and datacom markets, primarily fiber-to-the-home (FTTH).

Assets sold include the intellectual property, inventory and fixed assets for NeoPhotonics' passive optical network (PON) products including GPON and GEPON transceiver products at up to 10G data rates, plus 10G-and-below telecom, bi-directional and specialty transceiver products used in telecom client, access and enterprise network applications.

In 2015, and for the first nine months of 2016, the Low Speed Business generated $92.8m and $50.7m in revenue, respectively, and gross profit of $17.1m and $9.7m, respectively. Net assets for the business were about $17m as of end-September 2016.

When announced in December, the transaction was valued at about $26.4m (inclusive of post-closing payments under a transition services agreement). This consists of an equivalent of $25m purchase price plus an additional $1.4m to be paid as certain transition services are delivered (not less than the equivalent of $23m to be paid in cash in China Renminbi at close and not more than $2m in a US dollar denominated promissory note). In addition, APAT OE assumes outstanding supply chain purchase commitments and is responsible for the payment of value-added tax obligations. The secured promissory note is for an initial term of six months with an initial interest rate of 6% per annum. It is renewable at six month intervals with an increase in the interest rate by an additional 4% per annum. The note is secured by inventory and certain fixed assets purchased in the transaction.

"This transaction further solidifies our focus on serving the highest-speed, highest-performance and highest-growth segments in the optical communications market, where we believe our vertically integrated advanced hybrid photonic integration technology will have the greatest impact," says NeoPhotonics' CEO Tim Jenks.

See related items:

NeoPhotonics selling low-speed transceiver business to China's APAT for $26.4m

NeoPhotonics reports record revenue of $103.3m in Q3, up 24% year on year

Tags: NeoPhotonics PICs

Visit: www.neophotonics.com

Visit: www.apatoe.com

Share/Save/Bookmark
See Latest IssueRSS Feed

AXT

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player



CS Mantech