SAXONBURG, Pa., Dec. 29, 2009 – Crystal growth technology company II-VI Inc. announced Monday it will acquire China-based photonics company Photop Technologies Inc. in a cash and stock deal worth approximately $83 million.
II-VI said it will pay $45.6 million in cash and issue 1.15 million shares of its stock, worth approximately $37.2 million, to acquire Photop. The transaction, which has been approved by Photop shareholders and its board as well as the II-VI board, is scheduled to close in January.
Saxonburg-based II-VI produces crystalline compounds, including zinc selenide, for infrared laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers. Its HighYag Lasertechnologie business makes fiber-based beam transmission systems and processing tools for industrial lasers. It also operates an infrared optics business named II-VI Infrared, a near-infrared optics business named VLOC, a military and materials business and a compound semiconductor group.
Photop Technologies was established in 2003 through a merger of optics, lasers, fiber optics and photonic crystal materials makers in China. A vertically integrated manufacturer of engineered materials, optical components, microchip lasers for visible display applications, and optical modules for use in fiber optic communications networks and other diverse consumer and commercial applications, Photop is based in Fuzhou and has more than 3000 employees, including 350 engineers in Fuzhou, Shanghai and Guangzhou.
Upon closing, Photop will be combined with II-VI’s subsidiary VLOC Inc. This combined group, along with the Compound Semiconductor Group, will be directed by Dr. Vincent D. Mattera Jr., vice president of II-VI, who will be promoted to executive vice president.
“We are excited to partner with Photop to combine efforts and enhance our collective expertise in crystal materials and optics,” said Carl J. Johnson, chairman of II-VI Inc. “Led by its strong, experienced and skilled management team, 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, including the optical communications and micro-optics display markets.
“The combination of II-VI and Photop will benefit our customers, employees and shareholders and will fuel our long-term growth objectives through our stronger presence in China and the rest of the world,” he said. “Both companies have a passion for technological innovation and close customer engagement, and we look forward to integrating our similar entrepreneurial cultures and achieving future goals together.”
“We believe that by joining forces with II-VI, we will have access to significantly more resources, especially through its VLOC subsidiary and near-infrared optics business, further securing our capabilities on research and product development, sales marketing and manufacturing operations,” said Hongrui Wang, chairman of Photop Technologies.
For more information, visit: www.ii-vi.com