II-VI to buy Oclaro's thin-film filter business and interleaver product line
Engineered materials and optoelectronic components company II-VI Inc. (NASDAQ:IIVI) has signed a definitive agreement to buy the thin-film-filter business and interleaver product line of Oclaro, Inc. (NASDAQ:OCLR). II-VI will pay $27 million in cash for the assets.
II-IV business unit Photop Technologies, Inc. will assume responsibility for the new properties, which will be included in the company's Near-Infrared Optics operating segment for financial reporting purposes. The transactions are expected to close on December 3, 2012.
The deal will continue II-VI’s string of acquisitions. It purchased Photop in 2010 and Aegis Lightwave in 2011 (see “II-VI Inc. acquires Aegis Lightwave”). It also purchased M Cubed Technologies, Inc., a developer of ceramic materials and precision motion control products, earlier this month. II-VI spent $71.4 million in cash for M Cubed.
Said II-VI President and CEO Francis J. Kramer of the deal with Oclaro, "This acquisition will enhance Photop's core business while expanding their global footprint and diversification into the growing life sciences market. We look forward to the world class team at Santa Rosa becoming a part of II-VI."
"Divesting our thin-film-filter business and the interleaver product line is consistent with our strategy to focus our resources on our core competencies,” added Alain Couder, chairman and CEO of Oclaro. “The proceeds from these deals improve our balance sheet and give us additional operating flexibility to serve our global customer base. The agreements also strengthen our existing relationships with II-VI and Photop, and will ensure customers in the telecom, life sciences, and industrial markets continued access to these products as part of an even broader portfolio from a market leader."
II-VI says it does not expect the acquisition to have a material effect on previous guidance for revenues and earnings per share for the quarter ending December 31, 2012 and for the fiscal year ending June 30, 2013.
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