Boston, MA 10/01/2013 (wallstreetpr) – Oclaro, Inc. (NASDAQ:OCLR) announced its FY13 annual report on September 27. One of the bigger items discussed in the report was recent developments around the sale of its Swiss subsidiary.
Oclaro Switzerland GmbH sold to II-VI
Oclaro sold its subsidiary “Oclaro Switzerland GmbH” on September 17. The buyer was “II-VI Incorporated”. The sale agreement covers all the assets of the Swiss subsidiary which include “GaAs fabrication facility, laser diodes, pump laser product lines in addition to intellectual property originating from research and development facility in Tucson, Arizona.”
In exchange, Oclaro received close to $92.3 million in cash. The transaction was completed on September 12, 2013. As part of the sale agreement, OCLR can expect up to $8 million from the buyer over the next 16 months in the event of no new claims emerging with respect to post closing account adjustment. Oclaro will continue to carry forward on to its books the close to $14.7 million account receivable and $9.6 million payables from its Swiss operations.
In a separate deal, “II-VI” has paid an additional $ 5 million to Oclaro to gain exclusive option to purchase its “Amplifier Business” for $88 million cash. The buyer has 30 days to complete this transaction failing which the option will elapse and OCLR would retain the $ 5 million earnest money. If the deal does get consummated before October 12, then the $5 million already paid would be adjusted into the purchase price.
The company is using part of the proceeds it revived from the sale to retire debt of $24.6 million. It has committed to invest reminder of the proceeds into research and development while continuing to shed its non core business operations.
Oclaro is one of the biggest providers of optical components which are used by the market leaders in the optical communications market. It products are used by industry majors like Alcatel-Lucent; Cisco; Ericsson; Fujitsu and Huawei.
