April 15, 2005 Hillsboro, OR and Lehigh Valley, PA -- TriQuint Semiconductor and CyOptics have announced an agreement whereby TriQuint will sell its optoelectronics operations in Breinigsville, Pennsylvania and Matamoros, Mexico, to CyOptics, a private optical components manufacturer headquartered in Lehigh Valley, Pennsylvania.
The asset sale includes the products, manufacturing equipment, inventory, the Mexican entity, related intellectual property rights, and other assets that constitute the operation, which manufactures indium phosphide (InP) optical chips and components for the optical networking market. TriQuint will continue to support its current optical customers and products based on gallium arsenide that are not associated with the operations in Pennsylvania and Mexico. CyOptics plans to employ the majority of TriQuint's approximately 100 employees in Pennsylvania, and approximately 150 employees in Mexico.
"TriQuint's total consideration from the sale of the building and the business will be approximately $32 million, and will result in a one-time gain of between $7 million and $8 million. We will also receive a minority ownership share in CyOptics," notes Ralph Quinsey, president and CEO of TriQuint. "We now intend to turn our full attention to our growing businesses in the wireless handset, base station, defense, and wireless broadband access markets, building on our portfolio of successful semiconductor and filter products."
On March 11, 2005 TriQuint announced that it had entered into an agreement to sell its optoelectronics facility of nearly 850,000 square feet plus surrounding property in Breinigsville, Pennsylvania, to Anthem Partners, LLC, an affiliate of the MRA Group of Plymouth Meeting, Pennsylvania. MRA intends to transform the existing facility into an advanced technology center combining technology research and development, bio-medical engineering, and high tech manufacturing functions with a related education advancement and conference center. For its operations, CyOptics will lease approximately 90,000 square feet of space in this facility, once it has completed its purchase of TriQuint's business.
"The combination of CyOptics and TriQuint's optoelectronics business makes the new CyOptics a top five supplier of InP optical chips and components," contends Ed J. Coringrato, president and CEO of CyOptics. "The TriQuint optoelectronics business is one of the best in the industry, with a rich history dating back to Bell Labs and Lucent Technologies."
Completion of both transactions is subject to customary closing conditions. TriQuint anticipates the sale to CyOptics to close by the end of April 2005, and the sale to Anthem by the end of May 2005.