NeoPhotonics will sell its Access and Low Speed transceiver product lines to APAT Optoelectronics Components Co., of Shenzhen, China. The transaction is valued at approximately $26.4 million, inclusive of post-closing payments under a Transition Services Agreement.
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.
Commenting on the transaction, Tim Jenks, NeoPhotonics Chief Executive Officer, stated, “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.”
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