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Optoelectronics/Displays??

Luminent to acquire HG Genuine Opto for $40M

Posted: 30 May 2006 ?? ?Print Version ?Bookmark and Share

Keywords:acquisition? Luminent? HG Genuine Opto?

Luminent Inc., a wholly-owned subsidiary of MRV Communications, and Huagong Tech Co. Ltd (HG Tech), announced that Luminent has agreed to acquire HG Genuine Opto, a fiber optic transceiver manufacturer and subsidiary of HG Tech.

Under the agreement, Luminent will acquire HG Genuine for $40 million in cash and 15 percent of Luminent's common stock to be outstanding at the time the acquisition closes. The closing is subject to the satisfaction of various conditions, including completion of due diligence and obtaining necessary governmental and third-party approvals in the U.S. and China as well as other customary closing conditions.

MRV will own 85 percent and HG Tech will own 15 percent of the resulting company. In the event that certain conditions following the closing are not met, HG Tech has the right to sell its interest in Luminent back to MRV for $45 million in cash or stock.

According to Near Margalit, CEO of Luminent, the combined entity should have an average monthly module run rate over 200,000 units.

With over 500 employees and 100 engineers, HG Genuine focuses on technology and manufacturing in semiconductor laser and photodiode chips, analog cable TV transmitters, 3G transmitters, and digital transceivers for datacom and telecom markets.

Luminent is a provider of fiber-to-the-premise, metro transceivers, and Coarse wavelength division multiplexing and dense wavelength division multiplexing solutions.




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