NeoPhotonics will become a major supplier of tunable lasers following its acquisition of tunable laser and optical transceiver assets from Emcore, which closed on 5 January.
Emcore received $17.5 million (€14.9 million) for the assets, $1.5 million in cash now and $16 million in the form of a promissory note that will mature in two years.
The principal amount of the promissory note is subject to repayment under certain, unspecified circumstances, as well as to a number of post-closing adjustments including inventory, net accounts receivable, and pre-closing revenue levels.
NeoPhotonics seems pleased with the deal. 'Emcore’s narrow linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for 100G coherent transport systems, and this acquisition significantly expands our footprint in this rapidly growing segment,' said Tim Jenks, chairman and CEO of NeoPhotonics.
Explaining why the company entered into the transaction, Jenks said: '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,'
NeoPhotonics existing product range includes tunable lasers for metro and intermediate distances, based on a monolithic distributed feedback (DFB) laser array design it acquired from Santur in 2011.
The acquisition is expected add to NeoPhotonics earnings per share on a non-GAAP basis by the second quarter of 2015.