December 18, 2007, Albuquerque, NM and Santa Clara, CA--EMCORE Corporation and Intel Corporation announced a definitive agreement for EMCORE to acquire the telecom-related portion of Intel's Optical Platform Division for $85 million. The telecom assets to be acquired include intellectual property, assets and technology relating to tunable lasers, tunable transponders, 300-pin transponders, and integrable tunable laser assemblies.
The acquisition will enhance EMCORE's presence in the telecommunications market segment and expand its fiber optics product portfolio, allowing EMCORE to provide telecom customers with a more complete product offering. Reuben Richards, CEO, EMCORE, said, "We are excited about this acquisition and the opportunity to continue building upon Intel's leading tunable laser technology, strong product quality, and history of customer service and satisfaction. The acquired assets should drive substantial product cost reduction, and the combined product portfolio should enable EMCORE to gain a greater share of customer spending. EMCORE estimates these assets will generate $65 million of revenue in 2008, and believes this acquisition will accelerate its path to earnings-per-share profitability as expected in mid-2008."
"The optical telecom components business continues to be an attractive market opportunity, but we believe this business and its assets are an optimal fit with EMCORE," said Doug Davis, VP, Intel Digital Enterprise Group, and general manager, Embedded and Communications Group.
The sale of these telecom-related assets enables Intel to focus its investments on core communications and embedded market segments in line with its platform strategies. In addition to this announced transaction, Intel is currently exploring strategic alternatives regarding the enterprise-focused portion of its Optical Platform Division.
For more information, visit www.intel.com.