Oclaro sells Zurich laser diode business to II-VI for $115M
SAN JOSE, Calif. – Optical communications provider Oclaro Inc. has sold its Zurich-based subsidiary and laser diode business to II-VI Inc. for $115 million as part of its restructuring plan.
Oclaro received $92 million in cash and will retain the existing accounts receivable, estimated at approximately $15 million. The remaining $8 million is being held by II-VI subject to traditional postclosing conditions.
“The sale of our gallium arsenide [GaAs] laser diode business is an important first step in our plan to restructure the company,” said Oclaro CEO Greg Dougherty. “We will use the proceeds from the sale to fully repay our bridge financing and to begin restructuring the company for the future. We intend to further simplify our operating footprint, reduce our cost structure and focus our R&D investment in the optical communications market.”
Oclaro Zurich includes its GaAs fabrication facility, high-power laser diodes, vertical-cavity surface-emitting laser and 980-nm pump laser product lines, including intellectual property, inventory, equipment and a related R&D facility in Tucson, Ariz. Revenue for the Zurich business was $87 million for the fiscal year that ended June 29.
Oclaro said it will continue the back-end manufacturing of the 980-nm pump and some high-power laser diode products at its Shenzhen, China, manufacturing facility and supply them to II-VI under a manufacturing services agreement.
As part of the deal, II-VI also paid Oclaro $5 million for a 30-day option to purchase Oclaro’s fiber amplifier and micro-optics business for $88.6 million. II-VI exercised the option in October, acquiring Oclaro’s amplifier and related subsystems business, and its micro-optics product lines, including intellectual property, inventory and equipment. Revenue for the business for the fiscal year that ended June 29 was approximately $94 million. The $5 million was applied to the total purchase price.
- Tiny (less than 2 mm in diameter) lenses, beamsplitters and other optical components used, for example, in endoscopes or microscopes or to focus light from semiconductor lasers and optical fibers.
- optical component
- One or more optical elements – typically cemented together - in an optical system that are treated as a single group; e.g., a beamsplitter, or a cemented doublet or triplet.
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