- 300,000 square foot facility with a 100,000 square foot clean room near Newcastle, U.K.
- GaAs, SiC and InP devices capabilities
- Purchase price of the acquisition was $80 million in cash
PITTSBURGH, Aug. 07, 2017 (GLOBE NEWSWIRE) -- II‐VI Incorporated (NASDAQ:IIVI), a leader in engineered materials and optoelectronic
components, today announced its acquisition of Kaiam Laser Limited, a 6-inch wafer fabrication facility in Newton Aycliffe in the
United Kingdom. The purchase price of the transaction was $80.0 million, and paid for from the Company’s cash reserves. The
acquisition is expected to be breakeven at the EBITDA level within 12 months.
The 300,000 square foot facility hosts a state of the art 100,000 square foot clean room designed for high volume manufacturing
of compound semiconductor devices based on GaAs, SiC and InP materials.
Dr. Chuck Mattera, President and Chief Executive Officer of II-VI said, “This facility hosts one of the best clean rooms in the
entire compound semiconductor industry and augments our capabilities at a time when industry capacity is rapidly becoming fully
subscribed. Given the demand we anticipate, this acquisition will allow us faster time to market than building a proprietary green
field site and will enhance our leadership position in the supply chain. It adds to our in-house capacity for VCSELs, and is also
as part of a broader strategic move to provide a versatile 6” wafer fab for GaAs, SiC and InP-based devices. This acquisition will
significantly expand our capacity and is expected to enable us over time to penetrate high growth markets driven by, for example,
3D sensing, 5G wireless, the electrification of the car, and data center communications.”
Dr. Bardia Peseshki, the CEO of Kaiam, added “II-VI will be using this fab more effectively by leveraging its full capacity and
multi-purpose use. I am looking forward to working with II-VI to establish a commercial relationship that includes having II-VI
provide InP-based epitaxial wafers and wafer fabrication services for our products as we continue to expand our transceiver
business in the rapidly growing 100G and impending 400G datacenter markets.”
As a part of its vertical integration strategy, II-VI is expanding its VCSEL product family and leveraging its broad engineered
materials and optoelectronic device technology platforms and manufacturing capabilities around the globe to drive scale and
innovation through the development of high performance compound semiconductor devices.
About II-VI Incorporated
II-VI Incorporated, a global leader in engineered materials and opto-electronic components is a vertically integrated
manufacturing company that develops innovative products for diversified applications in the industrial, optical communications,
military, life sciences, semiconductor equipment, and consumer markets. Headquartered in Saxonburg, Pennsylvania, with research and
development, manufacturing, sales, service, and distribution facilities worldwide, the Company produces a wide variety of
application-specific photonic and electronic materials and components, and deploys them in various forms including integrated with
advanced software to enable our customers. For more information, visit us at www.ii-vi.com.
About Kaiam Corporation
Headquartered in Newark, California, with large-scale manufacturing in Livingston, Scotland, Kaiam is a private company
commercializing photonic integrated circuits. Founded in 2009 by leading technologists from the optical networking industry, the
team has a record of delivering breakthrough products that change the rules of the marketplace. Current products include 40Gb/s and
100Gb/s LightScale™ optical transceivers optimized for data centers and a range of planar lightwave circuits (PLCs). For more
information, visit www.kaiam.com and follow on Twitter: @KAIAMcorp.
Forward-looking Statements
This press release contains forward-looking statements relating to future events and expectations that are based on certain
assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and relate to the Company's performance on a going-forward basis. The forward-looking
statements in this press release involve risks and uncertainties, which could cause actual results, performance or trends to differ
materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all
forward-looking statements made by it in this release have a reasonable basis, but there can be no assurance that management's
expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In
addition to general industry and global economic conditions, factors that could cause actual results to differ materially from
those discussed in the forward-looking statements in this press release include, but are not limited to: (i) the failure of any one
or more of the assumptions stated above to prove to be correct; (ii) the risks relating to forward-looking statements and other
"Risk Factors" discussed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016; (iii) the purchasing
patterns of customers and end-users; (iv) the timely release of new products, and acceptance of such new products by the market;
(v) the introduction of new products by competitors and other competitive responses; (vi) the Company's ability to assimilate
recently acquired businesses, and risks, costs and uncertainties associated with such acquisitions; and/or (vii) the Company's
ability to devise and execute strategies to respond to market conditions. The Company disclaims any obligation to update
information contained in these forward-looking statements whether as a result of new information, future events or developments, or
otherwise.
CONTACTS: Mark Lourie Dir. Corporate Communications II-VI Incorporated mark.lourie@ii-vi.com www.ii-vi.com Sherwin Cabatic, VP of Sales and Marketing Kaiam Corp. s.cabatic@kaiam.com www.kaiam.com
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