San Jose, CA--Photonic integrated circuit (PIC) module and subsystem manufacturer NeoPhotonics Corporation (NYSE: NPTN) and indium phosphide (InP) PIC products manufacturer Santur Corporation (Fremont, CA) have entered into a definitive agreement under which NeoPhotonics will acquire privately held Santur. Santur provides high-performance tunable laser arrays for metro and long-haul DWDM systems and PIC-based products for 40 Gbps and 100 Gbps communications applications.
NeoPhotonics has agreed to pay an estimated $39.2 million in cash for Santur, after deductions for closing costs and other adjustments, plus up to $7.5 million additional cash contingent on the financial performance of Santur products subsequent to closing of the transaction through the end of 2012.
"Santur has developed innovative indium phosphide (InP) based photonic integration products that are critical elements in 100G coherent transmitters and that complement the NeoPhotonics PIC-based 100G coherent receiver product line," said Tim Jenks, chairman and CEO of NeoPhotonics. "By combining active InP PICs from Santur with our hybrid PICs, we can provide our customers with new products for 100G coherent systems that feature higher levels of integration, higher performance and greater functionality. Furthermore, Santur's advanced tunable laser products also fit with our Speed and Agility product lines, enabling us to provide customers more complete solutions for reconfigurable networks," added Jenks.
Paul Meissner, president and CEO of Santur Corporation, said, "Our InP PIC technologies form the foundation for our line of innovative products that we have successfully developed and sold to leading customers around the world. We believe that the combination of our technology and products with complementary technology and products from NeoPhotonics can provide compelling value to our customers. This is a case of the sum being much greater than the parts, and we believe that NeoPhotonics represents an excellent strategic fit for Santur."
Santur revenues were approximately $21 million for the six months ending June 30, 2011. The parties expect the transaction to close in the fourth calendar quarter of 2011.
SOURCE: NeoPhotonics; www.neophotonics.com/news/newsneo_1611407.aspx
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Gail Overton | Senior Editor (2004-2020)
Gail has more than 30 years of engineering, marketing, product management, and editorial experience in the photonics and optical communications industry. Before joining the staff at Laser Focus World in 2004, she held many product management and product marketing roles in the fiber-optics industry, most notably at Hughes (El Segundo, CA), GTE Labs (Waltham, MA), Corning (Corning, NY), Photon Kinetics (Beaverton, OR), and Newport Corporation (Irvine, CA). During her marketing career, Gail published articles in WDM Solutions and Sensors magazine and traveled internationally to conduct product and sales training. Gail received her BS degree in physics, with an emphasis in optics, from San Diego State University in San Diego, CA in May 1986.