Optical communications component maker NeoPhotonics to sell its Access and Low Speed transceiver product assets to Shenzhen, China based APAT Optoelectronics Components Co., Ltd. The assets include the IP, inventory and fixed assets for NeoPhotonics’ PON products including GPON and GEPON transceiver products at up to 10G data rates, plus 10G and below telecom, bidirectional and specialty transceiver products. The total value is approximately $26.4 million, inclusive of post-closing payments under a Transition Services Agreement.
NeoPhotonics said in 2015, and for the first 9 months of 2016, the Low Speed Business generated $92.8 million and $50.7 million in revenue, respectively, and gross profit of $16.7 million and $9.7 million, respectively. Net assets for the business were approximately $18.0 million as of September 30, 2016.
Tim Jenks, NeoPhotonics Chief Executive Officer, said “After a comprehensive evaluation of the alternatives available for the Low Speed Business, we believe this transaction will best benefit our shareholders, customers, and employees. This transaction underscores our objective to focus our efforts on growing high speed optical networking products and solutions based on our advanced hybrid photonic integration technology platform to meet customer demand.” Jenks continued, “We believe the Low Speed Business will benefit from APAT OE's expertise in Access and PON products while continuing to provide quality products, support and services to customers.”
“We are excited to have the NeoPhotonics low speed product team join APAT, and look forward to having more products to sell to our largest customers as well as the opportunity this transaction creates for us to gain many new customers,” commented Rex Gu, Founder and CEO of APAT OE.