Tuesday, December 18, 2007

EMCORE to acquire Intel's Optical Division for $85 Million

EMCORE agreed to acquire the telecom--related portion of Intel's Optical Platform Division for $85 million.

The telecom assets to be acquired include intellectual property, assets and technology relating to tunable lasers, tunable transponders, 300--pin transponders and integrable tunable laser assemblies. The companies expect the deal to close in Q1 2008.

EMCORE offers compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. Its Fiber Optics segment offers optical components, subsystems and systems that enable the transmission of video, voice and data over fiber for telecommunications, cable television (CATV) and FTTP networks. EMCORE's Photovoltaics segment provides solar products for satellite and terrestrial applications.

Intel said the sale will help focus its investments on core communications and embedded market segments in line with its platform strategies. In addition to this announced transaction, Intel is currently exploring strategic alternatives regarding the enterprise-focused portion of its Optical Platform Division.

"The optical telecom components business continues to be an attractive market opportunity, but we believe this business and its assets are an optimal fit with EMCORE," said Doug Davis, vice president, Intel Digital Enterprise Group, and general manager, Embedded and Communications Group.