II-VI Buys Semiconductor Laser Business Of Oclaro - Quick Facts

(RTTNews) - II-VI Incorporated (IIVI) announced it has acquired the semiconductor laser business of Oclaro, Inc. (OCLR) in a transaction valued at $115 million. II-VI also acquired an exclusive option to purchase Oclaro's amplifier and micro-optics business for $88 million in cash.

II-VI will operate the acquired business as II-VI Laser Enterprise GmbH. II-VI said it expects the transaction to become accretive to earnings during the fiscal year ending June 30, 2015.

II-VI expects the acquired business to generate approximately $70 million in revenues for the remainder of fiscal year ending June 30, 2014, and is currently expected to be dilutive to earnings by between $0.08 and $0.12 per share, including $0.06 per share of estimated one-time acquisition-related expenses.

For the quarter ending September 30, 2013, II-VI expects the acquired business to be dilutive to earnings by between $0.07 and $0.08 per share, which also includes $0.06 per share of estimated one-time acquisition-related expenses.

Oclaro will use the proceeds from the sale to fully repay its bridge financing and to begin restructuring the company for the future.