News

28 December 2009

 

II-VI Inc to acquire China's Photop Technologies

II-VI Inc of Saxonburg, PA, USA says it has entered into a definitive agreement to acquire all the outstanding shares of Photop Technologies Inc of Fuzhou, China, for an initial consideration of approximately $45.6m in cash and around 1,150,000 shares of II-VI common stock. Additionally, the deal provides for earn-out opportunities related to Photop achieving certain future financial targets. The transaction is expected to close next month, subject to customary closing conditions.

Established in 2003, Photop is a photonics design and integrated manufacturer of fiber optics, precision optics, projection and display optics, solid-state lasers, crystal materials and other photonics products.

II-VI Inc produces numerous crystalline compounds including zinc selenide for infrared laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers. The firm operates a number of business groups:

• Compound Semiconductor Group - II-VI’s Wide Bandgap Materials (WBG) group manufactures and markets single crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics and power switching industries; the Marlow Industries Inc subsidiary designs and manufactures thermoelectric cooling and power generation solutions; and, the Worldwide Materials Group (WMG) provides expertise in materials development, process development, and manufacturing scale up.

• Near-Infrared Optics Group - VLOC manufactures near-infrared and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF lasers.

• Infrared Optics Group - II-VI Infrared manufactures optical and opto-electronic components for industrial laser and thermal imaging systems; HIGHYAG Lasertechnologie GmbH manufactures fiber-delivered beam transmission systems and processing tools for industrial lasers.

• Military & Materials Group - Exotic Electro-Optics (EEO) manufactures infrared products for military applications; Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines selenium and tellurium materials.

Photop will be combined with II-VI’s VLOC subsidiary and Near-Infrared Optics business for financial reporting purposes. This group, along with the Compound Semiconductor Group, will be directed by Dr Vincent D. (Chuck) Mattera, Jr., VP of II-VI, who will be promoted to executive VP of II-VI upon closing the transaction.

“We are excited to partner with Photop to combine efforts and enhance our collective expertise in crystal materials and optics.” said Carl J. Johnson, chairman of II-VI Inc. “Led by its strong, experienced and skilled management team, Photop has developed very impressive technology and a robust component product portfolio in the growing photonics markets and offers immediate access to the growing Chinese markets for engineered materials and components, including the optical communications and micro-optics display markets.”

Hongrui Wang, chairman of Photop Technologies Inc added, “We believe that by joining forces with II-VI we will have access to significantly more resources, especially through its VLOC subsidiary and Near-Infrared Optics business, further securing our capabilities on research and product development, sales marketing and manufacturing operations.”

See related item:

II-VI Inc sells eV Products to Endicott

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Visit: www.ii-vi.com

Visit: www.photoptech.com