In multi-part deal, II‐VI acquires Oclaro's Zurich laser diode business
Pittsburgh, PA--II‐VI (Nasdaq: IIVI) and Oclaro (Nasdaq: OCLR; San Jose, CA) announced a $115 million deal in which II-VI acquired the Zurich-based laser diode business of Oclaro. II‐VI also acquired a $5 million exclusive option to purchase Oclaro’s fiber amplifier and micro‐optics business for $88 million in cash.
II‐VI paid $92 million in cash to Oclaro for the laser diode business, which had been IBM Zurich and was later intregrated with the gallium arsenide laser diode assets in Tucson, AZ that Oclaro acquired from Newport in 2009. Oclaro retained $15 million in accounts receivable from the Zurich business, $6 million of cash is being held back by II‐VI for 15 months from the date ofthe close, and $2 million of cash is being held back by II‐VI for potential working capital adjustments. The $5 million option for the fiber amplifier and micro‐optics business will expire if not exercised by II‐VI within 30 days.
II‐VI will operate the Zurich business as II‐VI Laser Enterprise GmbH. FrancisJ. Kramer, president and CEO of II‐VI, noted, “We are very pleased to complement II‐VI’s broad and differentiated portfolio of engineered materials with a world‐class semiconductor laser platform enabling high‐performance and high‐reliability laser chips and modules addressing several growing markets. This acquisition is an integral part of II‐VI’s overall strategy, which is centered on a broad participation in laser systems across multiple applications.”
Greg Dougherty, CEO of Oclaro, said, "The sale of our gallium arsenide laser diode business is an important first step in our plan to restructure the company. 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 where we can leverage our core competencies."
Conard Holton
Conard Holton has 25 years of science and technology editing and writing experience. He was formerly a staff member and consultant for government agencies such as the New York State Energy Research and Development Authority and the International Atomic Energy Agency, and engineering companies such as Bechtel. He joined Laser Focus World in 1997 as senior editor, becoming editor in chief of WDM Solutions, which he founded in 1999. In 2003 he joined Vision Systems Design as editor in chief, while continuing as contributing editor at Laser Focus World. Conard became editor in chief of Laser Focus World in August 2011, a role in which he served through August 2018. He then served as Editor at Large for Laser Focus World and Co-Chair of the Lasers & Photonics Marketplace Seminar from August 2018 through January 2022. He received his B.A. from the University of Pennsylvania, with additional studies at the Colorado School of Mines and Medill School of Journalism at Northwestern University.