NeoPhotonics, which provides photonic integrated circuit (PIC) modules and subsystems , agreed to acquire the semiconductor optical components business unit (OCU) of LAPIS Semiconductor Co., a wholly-owned subsidiary of ROHM Co. Ltd. NeoPhotonics will pay approximately $36.8 million in cash, which is comprised of approximately $21.2 million in cash, before adjustments for the business unit and an additional $15.6 million over three years for the associated real estate.
The company’s, lasers, photodetectors and analog semiconductor integrated circuits (ICs) are critical elements of coherent and other high speed optical transmission devices. The business had revenue of approximately $45 million for the first nine months ended September 30, 2012. For the same period, approximately 30% of revenue attributable to OCU was from network equipment manufacturers that are also customers of NeoPhotonics, approximately 6% of revenue attributable to OCU was from NeoPhotonics, and the remainder attributable to OCU was from other optical module manufacturers and test and measurement customers. LAPIS Semiconductor OCU is located near Tokyo, Japan.
NeoPhotonics said the acquisition will accelerate the development of its Photonic Integrated Circuit (PIC) technology by coupling complex optical devices and analog semiconductor ICs within the same platform. In addition, the NeoPhotonics technology portfolio would expand to include high speed semiconductor devices for signal generation and amplification, which are designed to enable advanced modulation methodologies, enhanced performance, and reduced power consumption in communications networks.
“The transaction is a natural step in the relationship between NeoPhotonics and LAPIS Semiconductor OCU, as the businesses have been collaborating closely on high speed coherent technology development for the past four years. Further we plan to leverage our existing sales channels after the acquisition, as the two businesses serve many common customers. The transaction will provide NeoPhotonics with revenue from OCU’s advanced lasers and drivers used in many of today’s 100G client-side data transmission modules,” said Tim Jenks, NeoPhotonics Chairman and CEO.
Lapis Semiconductor was previously OKI Semiconductor