Luminent Buying HG Genuine Opto in Cash, Stock Deal

Luminent Inc., a provider of triplexer transceivers for triple play (voice, video and data) services, announced it is acquiring HG Genuine Opto of Wuhan, the second-largest fiber optic transceiver manufacturer based wholly in China, for $40 million in cash and 15 percent of its stock.

The closing is subject to various conditions, including obtaining the necessary governmental and third-party approvals and consents in the US and China, and other customary conditions. Luminent is a wholly-owned subsidiary of network equipment and optical component maker MRV Communications and HG Genuine Opto is a subsidiary of HG Tech. After the closing, MRV will own 85 percent and HG Tech will own 15 percent of the new company. If certain conditions following the closing are not met, HG Tech can sell its interest in Luminent back to MRV for $45 million in cash or stock.

HG Genuine has more than 500 employees and 100 engineers. It has developed technology in semiconductor laser and photodiode chips, analog cable TV transmitters, 3G transmitters and digital transceivers for datacom and telecom markets. Luminent said the purchase will help position itself as a global fiber optic supplier and it expects HG Genuine to contribute an additional 20 to 25 percent to its revenue base.

For more information, visit: www.luminentoic.com