More consolidation as TriQuint sells InP unit
Pennsylvania-based fiber-optic component and module supplier CyOptics is to acquire TriQuint Semiconductor's InP chip manufacturing business in a deal said to be worth $32 million.
TriQuint's manufacturing facility in Matamoros, Mexico, will be transferred as part of the acquisition. The deal also includes products, manufacturing equipment, and intellectual property.
CyOptics, which already has a chip manufacturing facility in Yokneam Illit, Israel, raised $10 million in fourth-round funding in September last year.
TriQuint has also agreed to sell its Breinigsville, PA, optoelectronics facility and surrounding property to Anthem Partners, which has plans to turn the site into an advanced technology center including conference facilities.
"The CyOptics team plans to hire the vast majority of our [approximately 250] employees in Pennsylvania and Mexico," said TriQuint CEO Ralph Quinsey. "The optoelectronics market will only support a few right-sized and nimble players."
TriQuint had moved into the optoelectronics business through its acquisition of Agere Systems' optoelectronics facilities back in October 2002 (see related story). The business has a strong pedigree, having been based on research and development work that took place at Bell Laboratories and Lucent Technologies prior to the spin-out of Agere.
Quinsey added that TriQuint would now be able to focus squarely on its core business of RF chips and products for wireless handsets, base stations and broadband access, as well as the defense market.
Ed Coringrato, the CyOptics CEO, said: "Industry consolidation is much needed and with this acquisition, CyOptics is well positioned"¦to serve the once-again-growing telecom equipment market."
He added that the acquisition, which is expected to close by the end of April, would make CyOptics a "top-five" supplier of InP-based optoelectronic chips and components.
As a result of the sale, TriQuint will record a financial gain of $7 million - $8 million and receive a minority ownership share in CyOptics.
