NeoPhotonics Corp. (NYSE: NPTN) has agreed to purchase assets from Emcore Corp. (Nasdaq: EMKR), a manufacturer of semiconductors and fiber-optic technology, as a means of expanding its product line.
The San Jose, California-based buyer, known for making photonic integrated circuit-based modules for high-speed communication networks, is set to spend $17.5 million on Emcore's tunable laser and transceiver product lines. The price tag includes $1.5 million in cash plus the balance in a promissory note. The transaction is expected to close in January.
The sale is "an important step in transforming the company and paving our path to generating consistent positive cash flow," according to Emcore chief executive Hong Hou .
NeoPhotonics intends to fold Emcore's operations into its own and integrate the business into in its current facilities in Silicon Valley.
Emcore, known for its external cavity laser, has been selling assets in recent years. Prior to the NeoPhotonics, the company inked a deal in September, selling its photovoltaics business to Veritas Capital Partners LP for $150 million in a leveraged buyout.
In August 2012, Suncore Photovoltaic Technology Co. Ltd. of China, agreed to acquire Emcore assets as well. Before that, in May 2012, the company sold product lines to Sumitomo Electric Device Innovations USA Inc.