II-VI to buy wavelength switch developer CoAdna for $85m

27 Mar 2018

Complementary product portfolio for ROADMs; business to be part of II-VI’s Photonics segment.

Acquisitive II‐VI, a significant player in optical solutions for networks and specialized materials, yesterday (March 26th) announced its intent to acquire CoAdna Holdings, based in Sunnyvale, CA, in a cash transaction valued at approximately $85 million.

CoAdna produces the smart photonic components, modules and systems destined for next-generation optical networks to enable the fast-growing high-speed broadband applications.

In recent months, II-VI has reported record quarterly revenues, after last year buying large UK wafer fab to expand laser production. Also in mid-2017, II-VI acquired Integrated Photonics for $45 million.

The latest deal transaction price includes the acquisition of CoAdna’s approximately $40 million in cash. The transaction is expected to close in the third calendar quarter of 2018 and is subject to the approval of CoAdna’s shareholders, regulatory approvals and customary closing conditions.

Synergies

Founded in 2000, CoAdna develops wavelength-selective switches, based on its patented LightFlow liquid crystal platform and the integration of II-VI’s micro-optics. CoAdna’s WSS modules have been integrated alongside II-VI’s optical amplifiers, optical channel monitors and other II-VI components on ROADM line cards designed by II-VI, CoAdna and their customers.

Sunny Sun, President, Photonics Segment, II-VI, said, “CoAdna and II-VI have been great business partners for many years, leveraging each other’s complementary products and technologies for the optical transport market.

“We are eager to grow the WSS business over our strong sales channels and shorten the time to market. With our manufacturing scale, vertical integration and broad product portfolio, we are well positioned for the growth in ROADM demand driven by metro network upgrades, new datacenter interconnects and emerging 5G wireless infrastructure.”

II-VI opens applications lab in Detroit

Advances in laser processing capabilities on automotive production lines are accelerating and driving increased collaboration between industrial laser specialists and car manufacturers. II-VI’s new applications laboratory in the “Motor City” provides close customer support on state-of-the-art laser materials processing with practical hands-on training, in-depth applications consulting and detailed feasibility studies.

The applications laboratory is equipped with the latest II-VI HighYAG laser processing heads for welding and brazing. This includes the RLSK remote laser welding head with its new seam tracking feature and the BIMO which allows users to adjust the laser beam focal diameter and position during or in-between welds. By combining these with a multi-kilowatt laser source, an industrial robot and a rotation table, processes can be developed for a wide range of configurations and materials.