II-VI Incorporated is acquiring amplifier and micro-optics business of Oclaro for $88.6 million. The acquisition will be finalised after certain regulatory clearances and is expected to be on or about November 1, 2013. Upon closing, II-VI will pay Oclaro $79.6 million in cash. II-VI previously paid Oclaro $5 million for a 30-day option to buy the Business, which has been credited against the $88.6 million purchase price. The remaining $4 million will be held by II-VI subject to traditional post-closing conditions.
"The sale of our amplifier business to II-VI is another important milestone in Oclaro's reinvention and return to financial stability," said Greg Dougherty, Oclaro CEO. "This transaction is another validation of the value of our technology, intellectual property and, most importantly, our people. The infusion of cash from our recent transactions with II-VI are critical catalysts to further our restructuring and turnaround plans."
In connection with the agreement, II-VI has purchased the amplifier and related subsystems business, and its micro-optics product lines, including intellectual property, inventory and equipment. II-VI will also hire approximately 145 employees of Oclaro, primarily located in Horseheads, NY, San Jose, CA and Shanghai, China. Revenues for the Business were approximately $94 million for the fiscal year ended June 29, 2013.
Service agreements will be established between the companies to ensure a smooth transition for our customers.
In another announcement, Oclaro said its chief financial officer, Jerry Turin, plans to resign from Oclaro on November 8, 2013, to pursue other opportunities. The company expects to name Mr. Turin's successor on or before November 8.