Neophotonics to Sell Low Speed Transceiver Business
Neophotonics, a US designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems, has agreed to sell its Access and Low Speed transceiver product lines to APAT Optoelectronics Components.
Based in Shenzhen, China, APAT is a designer and manufacturer of optical sub-assemblies for telecom and datacom markets.
The assets to be sold include the IP, inventory and fixed assets for NeoPhotonics' PON products including GPON and GEPON transceiver products at up to 10G data rates, plus 10G and below telecom, bidirectional and specialty transceiver products.
The transaction is valued at approximately $26.4 million and is subject to customary closing conditions and is expected to close in January 2017.
In 2015, and for the first 9 months of 2016, the Low Speed Business generated $92.8 million and $50.7 million in revenue, respectively, and gross profit of $16.7 million and $9.7 million, respectively. Net assets for the business were approximately $18.0 million as of September 30, 2016.
Commenting on the transaction, Tim Jenks, Neophotonics CEO, 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.
Neophotonics produces photonic integrated circuits (PICs) that comprise both arrayed and individual photonic functional elements using in-house silicon, InP and GaAs wafer fabs. The individual PICs from different materials are then combined using hybrid integration technology to make complete products