II-VI Inc. acquires Aegis Lightwave

July 6, 2011
II-VI Inc. (NASDAQ:IIVI), a company that leverages expertise in crystal growth to create products for a variety of applications, says it has acquired all of the outstanding shares of Aegis Lightwave, Inc., including Aegis’ wholly owned subsidiary AOFR Pty Ltd (AOFR). The initial consideration consists of $52 million in cash.

II-VI Inc. (NASDAQ:IIVI), a company that leverages expertise in crystal growth to create products for a variety of applications, says it has acquired all of the outstanding shares of Aegis Lightwave, Inc., including Aegis’ wholly owned subsidiary AOFR Pty Ltd (AOFR). The initial consideration consists of $52 million in cash. However, the purchase price is subject to closing adjustments, including a working capital and debt adjustment that could increase the purchase price by an additional $3 million, II-VI estimates.

The privately held Aegis specializes tunable optical devices for high-speed optical networks. The company’s product portfolio includes optical channel monitors specifically designed for reconfigurable optical add-drop multiplexers (ROADMs; see "Aegis Lightwave channel monitors support flexible bandwidth"). The company also had investigated receiver technology for use in WDM-PON networks (see “Wavelength-agile PONs offer an XG-PON1 alternative” from the pages of Lightwave). Meanwhile, its AOFR subsidiary offers fused fiber components including devices for fiber lasers used in material processing applications. AOFR also manufactures optical couplers used primarily in telecom markets.

Aegis and its subsidiaries had revenues of $26.6 million during the year ended December 31, 2010.

According to Francis J. Kramer, president and CEO of II-VI Inc., “Aegis will further strengthen our telecommunication product offerings and will partner with our Photop Technologies, Inc. (Photop) operations to enhance our ability to address our customers’ growing needs for an advanced product portfolio for the increasing deployments of 40G and 100G in flexible and reconfigurable optical networks, including those aimed at delivering fiber to the home [FTTH] services over passive optical networks. Aegis and AOFR will operate as part of our Near-Infrared Optics segment, and will work cooperatively with Photop to further leverage and expand our combined offerings and continue to provide exceptional quality and customer service around the world. We are excited to welcome the employees of Aegis and AOFR to our company.”

For the fiscal year ending June 30, 2012, II-VI is updating its revenue guidance from a range of $565 million to $580 million to a range of $595 million to $615 million as a result of the transaction. II-VI is updating its guidance for earnings per share (adjusted for the Company’s previously announced two-for-one stock split that occurred in June 2011) from a range of $1.40 to $1.48 to a range of $1.43 to $1.52 as a result of the transaction. II-VI plans to release its financial results for the fourth fiscal quarter ended June 30, 2011 on August 2, 2011

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