Newport Corporation on June 3 announced that it has signed definitive agreements with Oclaro, Inc. for an exchange of assets and cash between the two companies. Under the terms of the agreements, Newport will acquire Oclaro's New Focus business and its portfolio of high-performance products that includes opto-electronics, high-resolution actuators, opto-mechanics, tunable lasers, vacuum and ultraclean solutions, and OEM-engineered solutions. Simultaneously, Oclaro will acquire Newport's high-power diode laser manufacturing operations, located in Tucson, Arizona.
"New Focus has a whole selection of product technology and intellectual property, which are synergistic and complementary to that of Newport," said Gary Spiegel, vice-president of worldwide sales for Newport in an interview with SPIE Newsroom. Spiegel cited the New Focus expertise in narrow-line lasers, tunable lasers, modulators, and optomechanics.
"The strategy really is to continue to increase our portfolio of technology in photonics tools for the researcher or industrial markets," Spiegel said. He cited "ease of commerce" as an advantage for OEM customers, who will now have a broader range of products available from a single supplier.
The transaction is expected to close within three to five weeks. The company noted that it will provide additional information about the expected impact of the transaction on its financial condition and future financial performance after the transaction is finalized.
Spiegel said that the company expects to "integrate slowly" after the exchange is finalized.
"As we move through integration there will be shifts of people and shifts of workload from one side to another," Spiegel said that there may ultimately be some job consolidation, but that Newport and New Focus personnel will be treated equally.
Newport noted that the majority of the photonics products being acquired are being manufactured at Oclaro's plant in Shenzhen, China, and will be transferred to Newport's facility in Wuxi, China, approximately doubling the manufacturing output of that facility. Lasers and electro-optical products that are currently manufactured by Oclaro in San Jose, California will be transferred to other Newport facilities.