MOUNTAIN VIEW, Calif., Jan. 14, 2008 -- Arasor International Ltd., the Australian light source maker that developed an optoelectronic chip for laser TV, has acquired Novalux, of Sunnyvale, Calif., for $7 million in stock as part of its joint venture with Chinese telecom ZTE Corp. to commercialize the technology for use in TVs, projectors and smaller screens such as laptops, PDAs and mobile phones. (See "Arasor, ZTE to Make Displays") Most of the shares will be in escrow up to 12 months, Arasor said in a statement filed with the Australian Stock Exchange. It said the acquisition will allow it to take "further control of the laser display and projection value chain" and to double its revenue from the display market, since light engines can contain up to three Novalux laser chips and three Arasor optical chips. Arasor makes its chips at a facility in Mountain View, Calif., which it lists as its international headquarters. It said the deal will also enable it to secure manufacturers Seiko Epson, Young Optics, Oerlikon and other display customers via exclusive licenses, since it now "owns the complete light source solution for laser TV"; and that it will secure a team of employees with experience in laser display and related technologies. Novalux has a gallium arsenide semiconductor fabrication facility in Sunnyvale. It was founded in 1998 to provide lasers for telecommunications and display applications. Its Necsel laser technology (Novalux extended cavity surface-emitting laser) enables devices such as laser TV, laser pocket projects and laser cinema projectors. The company had been funded by investors including Oerlikon Optics (an Arasor cusomter and light-engine manufacturer for TV manufacturers), Morgan Stanley Ventures and Crescendo Ventures. Arasor CEO Simon Cao said, "The acquisition continues to move us toward our goal of being a world-leading innovator and manufacturer of technology that enhances the performance of many types of electronic equipment. We have experienced unprecedented growth in telecommunications products, and 2008 will see the scale-up of our consumer division to satisfy demands. With the imminent release of laser TVs, we are excited to be able to provide a complete light source solution for the major brands and the ZTE joint venture. This significantly increases our earnings potential and our ability to negotiate with large global customers. Most importantly, no other company will be able to provide this unified solution."