II-VI to acquire CoAdna Holdings in $85 million cash transaction

II-VI Inc. (NASDAQ:IIVI) has announced that it will acquire CoAdna Holdings, Inc. (TWSE:4984) in a cash transaction. Valued at around $85 million at closing, the transaction price includes the acquisition of CoAdna's nearly $40 million in cash, says II-VI. The company expects the deal to close in the third calendar quarter of this year, subject to CoAdna shareholders' approval, regulatory approvals, and customary closing conditions.

Headquartered in Sunnyvale, CA and founded in 2000, CoAdna designs and manufactures optical components, modules, and sub-systems, including LC devices, ROADM, and wavelength selective switches (WSS) based on its LightFlow liquid crystal platform and II-VI's micro-optics (see, for example, "CoAdna to offer Gen-2 LightFlow ROADM subsystems" and "CoAdna recasts Optical Virtual Switch systems for data center interconnect"). Among successful field deployments, CoAdna's WSS modules have been integrated alongside II-VI's optical amplifiers, optical channel monitors, and other components on ROADM line cards designed by II-VI, CoAdna, and their customers, says II‐VI.

"CoAdna and II-VI have been great business partners for many years, leveraging each other's complementary products and technologies to serve the optical transport market," said Sunny Sun, II-VI Inc. president, photonics segment. "We are eager to realize our synergies to grow the WSS business over our strong sales channels and shorten the time to market for our new products. With our manufacturing scale, unmatched vertical integration and broad product portfolio, we are well positioned for the growth in ROADM demand driven by metro network upgrades, new data center interconnect architectures and the emerging 5G wireless infrastructure."

This acquisition is in addition to II-VI's transaction in 2011 to acquire all of the outstanding shares of Aegis Lightwave, Inc., including Aegis' wholly owned subsidiary AOFR Pty Ltd (AOFR) (see "II-VI Inc. acquires Aegis Lightwave"). Earlier this month, II-VI launched ultra-low profile wide band tunable optical filters for next-generation pluggable coherent optics, which it showcased in San Diego, CA at OFC 2018 (see "II-VI to showcase ultra-low profile wide-band tunable optical filters at OFC 2018").

CoAdna, meanwhile, introduced at the show the Edge series twin WSS, designed for use in edge and access fiber networks that will support of 5G wireless applications.

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