NeoPhotonics to acquire Lapis Semiconductor for IC expertise

Created January 23, 2013
News and Business

NeoPhotonics, an optical components manufacturer, has agreed to acquire the semiconductor optical components business unit of Lapis Semiconductor, which develops lasers, drivers, and detectors for high speed 100G applications. Lapis Semiconductor is a wholly-owned subsidiary of Rohm in Japan. 

The business is to be acquired by NeoPhotonics Japanese subsidiary, NeoPhotonics Semiconductor GK, which has agreed to pay $36.8 million (€27.6 million) in total, comprised of $21.2 million in cash, before adjustments, for the business unit and an additional USD 15.6 million over three years for the associated real estate. Payments will be made in Japanese Yen.
 
NeoPhotonics says the acquisition brings a number of key benefits. The company has plans to integrate complex optical devices and analogue semiconductor ICs within the same platform, to expand the capabilities of its photonic integrated circuit (PIC) technology. In addition, it will add high-speed semiconductor devices for signal generation and amplification to the company’s product portfolio. 
 
The acquisition also brings with it a portfolio of more than 150 patents and patents applications, as well as Lapis Semiconductor’s campus and high-speed semiconductor and laser and detector fabrication facility.
 
 “The transaction is a natural step in the relationship between NeoPhotonics and LAPIS Semiconductor OCU, as the businesses have been collaborating closely on high speed coherent technology development for the past four years,” said Tim Jenks, chairman and CEO of NeoPhotonics. Lapis Semiconductor’s technologies are well-suited for data rates in optical networks beyond 100G, he adds.
 
Following the completion of the transaction, NeoPhotonics intends to combine and operate the business as part of NeoPhotonics Semiconductor GK in its current location near Tokyo, Japan. The board of directors of each company has approved the transaction. The parties expect the transaction to close in the second quarter or sooner, subject to customary closing conditions.
 
NeoPhotonics has grown significantly through acquisitions over the years, including four in 2006. It’s most recent purchase, in 2011, was tunable laser specialist Santur (see NeoPhotonics acquires photonic integration specialist Santur).
 
By Pauline Rigby

See Also: 
Press release: NeoPhotonics Announces Definitive Agreement to Acquire the Semiconductor Optical Business Unit of LAPIS Semiconductor

Pauline Rigby

This article was written
by Pauline Rigby