II-VI Incorporated (Saxonburg, PA) said that it will acquire all of the outstanding shares of Photop Technologies, Inc. (Photop) for $45.6 million and 1,150,000 shares of II-VI common stock. The agreement also provides for earn-out opportunities based upon Photop achieving certain future financial targets. The agreement has been approved by the shareholders and Board of Directors of Photop and the Board of Directors of II-VI, and is scheduled to close in January 2010.
Headquartered in Fuzhou, China with more than 3,000 employees, Photop manufactures engineered materials, optical components, microchip lasers for visible-display applications, and optical modules for use in fiber-optic communications networks and other consumer and commercial applications.
"Photop has developed very impressive technology and a robust component product portfolio in the growing photonics markets and offers immediate access to the growing Chinese markets for engineered materials and components," said Carl J. Johnson, Chairman of II-VI.
Upon the closing of the transaction, Photop will be combined with II-VI's VLOC Incorporated subsidiary and Near-Infrared Optics business for financial reporting purposes. This combined group, along with the Compound Semiconductor Group, will be directed by Vincent D. (Chuck) Mattera, Jr., vice president of II-VI, who will be promoted to executive vice president of II-VI when the transaction is closed.
About II-VI
II-VI produces crystalline compounds including zinc selenide for IR-laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers.
II-VI Infrared manufactures optical and optoelectronic components for industrial laser and thermal imaging systems, and HIGHYAG Lasertechnologie GmbH (HIGHYAG) manufactures fiber-delivered beam transmission systems and processing tools for industrial lasers. In II-VI's near-IR optics business, VLOC manufactures near-IR and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF lasers. In II-VI's military and materials business, Exotic Electro-Optics (EEO) manufactures IR products for military applications, and Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines selenium and tellurium materials. In II-VI's Compound Semiconductor Group, the Wide Bandgap Materials (WBG) group manufactures and markets single-crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics, and power switching industries; the Marlow Industries, Inc. subsidiary designs and manufactures thermoelectric cooling and power generation products for use in defense, space, photonics, telecommunications, medical, consumer and industrial markets; and, the Worldwide Materials Group (WMG) provides expertise in materials development, process development, and manufacturing scale up.
