II-VI buys M Cubed Technologies

Pittsburgh, PA--Optical components maker II-VI Incorporated (NASDAQ:IIVI) has acquired all of the outstanding shares of M Cubed Technologies (Monroe, CT), which develops advanced ceramic materials and precision motion control products. The initial consideration consisted of cash of $71.4 million. In addition, the purchase price is subject to customary closing adjustments, including a working capital adjustment that could increase the purchase price by up to $2.5 million in cash.

For the fiscal year ending June 30, 2013, M Cubed is expected to generate approximately $35 million in revenues during the eight months of ownership by II-VI and to be accretive between $0.01 and $0.03 earnings per share, net of transaction expenses. M Cubed will be included in the company's Advanced Products Group segment for financial reporting purposes.

The acquistion will enable the company to expand its engineered material business, particularly in reaction-bonded silicon carbide ceramics and metal matrix composite-engineered materials for the semiconductor, display, industrial, and defense markets. Synergies in both material and process technologies will also help the company to launch new products to address the needs of semiconductor tool makers, as they address existing and new technology nodes as well as the move toward 450 mm wafer processing. The company also anticipates development of new materials for optical, wear, refractory, and thermal management applications in the industrial sector, explains Francis J. Kramer, II-VI president and CEO.

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