II-VI exercises option to buy Oclaro's amplifier and micro-optics businesses

Optical component, module, and subsystems vendor Oclaro Inc. (NASDAQ: OCLR) says that II-VI Inc. (NASDAQ: IIVI) has exercised its option to purchase Oclaro’s amplifier and micro-optics business. II-VI will pay $88.6 million for the assets. Oclaro expects the deal to close around November 1.

Optical component, module, and subsystems vendor Oclaro Inc. (NASDAQ: OCLR) says that II-VI Inc. (NASDAQ: IIVI) has exercised its option to purchase Oclaro’s amplifier and micro-optics business. II-VI will pay $88.6 million for the assets. Oclaro expects the deal to close around November 1.

II-VI purchased the option for $5 million as part of the deal to acquire Oclaro’s laser diode business last month (see “Oclaro sells GaAs laser diode business to II-VI”). The company will pay Oclaro $79.6 million in cash upon closing, with the remaining $4 million held “subject to traditional post-closing conditions,” Oclaro said in a press statement.

The pending sale includes the amplifier and related subsystems business and micro-optics product lines, including intellectual property, inventory, and equipment. About 145 Oclaro employees, primarily located in Horseheads, NY, San Jose, CA, and Shanghai, China, will move to II-VI.

Oclaro says the assets generated approximately $94 million in revenue for the fiscal year ended June 29, 2013.

Oclaro is selling the assets as part of a restructuring under the guidance of new CEO Greg Dougherty. The company has decided to cease R&D in wavelength-selective switches as part of the plan (see “Oclaro to halt WSS R&D as part of restructuring”).

"The sale of our amplifier business to II-VI is another important milestone in Oclaro's reinvention and return to financial stability," said Dougherty in the same press release. "This transaction is another validation of the value of our technology, intellectual property and, most importantly, our people. The infusions of cash from our recent transactions with II-VI are critical catalysts to further our restructuring and turnaround plans."

For more information on amplifiers and suppliers, visit the Lightwave Buyer’s Guide.

More in Mergers & Acquisitions