II-VI Buys LightWorks Optics for up to $35M
PITTSBURGH, Dec. 21, 2012 — In a move to address the growing commercial markets for precision optical assemblies, II-VI Inc. announced today that it has acquired privately held LightWorks Optics Inc. for an initial cash consideration of $31 million. The deal includes another $4 million in cash if LightWorks achieves certain performance milestones.
Founded in 1997, LightWorks is based in Tustin, Calif., with manufacturing locations there and in Vista, Calif. The company makes precision optical systems and components, including visible, infrared, and laser-based systems and subassemblies for the defense, aerospace, industrial and life science markets. The company's revenue for the 12 months ended Sept. 30, 2012, is $22 million.
Vertically integrated manufacturer II-VI provides engineered materials and optoelectronic components. Its crystalline compounds include zinc selenide for infrared laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers. The company has an infrared optics business, a near-infrared optics business that includes Photop Technologies and an advanced products group, Wide Bandgap Materials. II-VI's military and materials business, Exotic Electro-Optics (EEO), makes infrared products for military applications.
II-VI said it didn't expect the Lightworks purchase to have a material impact on its previous guidance for the quarter ending Dec. 31 and for the fiscal year ending June 30, 2013. LightWorks will be included in II-VI's Military & Materials segment for financial reporting purposes, the company said.
"We are excited about the acquisition of LightWorks and anticipate a unique partnership with our Exotic Electro-Optics business unit which is also based in California," said II-VI President and CEO Francis J. Kramer.
"LightWorks' expertise in the engineering design and manufacturing of complete optical subsystems is a logical market extension for EEO," said LightWorks President Daniel Barber in the same statement. "The optical system designs we create involve engineering and manufacturing expertise similar to those possessed by EEO, and will extend the range of solutions the combined companies offer to the marketplace."
The deal is subject to customary closing adjustments, including a working capital adjustment.
For more information, visit: www.ii-vi.com
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