EMCORE Announces Closing of Sale of its Tunable Laser and Transceiver Product Lines to NeoPhotonics Corporation for $17.5 Million

Date Announced: 05 Jan 2015

$1.5M cash banked plus $16M promissory note.

ALHAMBRA, Calif., Jan. 5, 2015 (GLOBE NEWSWIRE) -- EMCORE Corporation (EMKR), a leading provider of compound semiconductor-based components and subsystems for the broadband and specialty fiber optics market, today announced that it completed the previously announced sale of its tunable laser and transceiver product lines to NeoPhotonics Corporation (NPTN). In connection with the closing of the transaction, EMCORE received $1.5 million in cash and a promissory note from NeoPhotonics in the principal amount of $16 million. The promissory note will mature two years from the closing date of the transaction, subject to repayments under certain circumstances, and is secured by certain of the assets sold to NeoPhotonics in the transaction. The purchase price is subject to certain post-closing adjustments for inventory, net accounts receivable and pre-closing revenue levels, which will increase or decrease the principal amount of the promissory note as applicable.

Source: Emcore

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