Emcore acquires Intel asset

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Emcore Corporation recently entered into an agreement to acquire the telecom-related portion of Intel Corporation’s Optical Platform Division for $85m.

The telecom assets to be acquired include intellectual property, assets and technology relating to tuneable lasers, tuneable transponders, 300-pin transponders and integrated tuneable laser assemblies. The transaction is subject to regulatory review and is expected to close in the first quarter of 2008.

The acquisition is expected to enhance Emcore's presence in the telecommunications market and expand its fibre optics product portfolio.

‘The acquired assets should drive substantial product cost reduction, and the combined product portfolio should enable Emcore to gain a greater share of customer spending,’ said Reuben Richards, CEO, Emcore. ‘We estimate these assets will generate $62m of revenue in 2008 and accelerate earnings per share profitability as expected in mid-2008.’

Intel said in a statement that the sale of these telecom-related assets enables it to focus investments on core communications and embedded market segments in line with its strategies.