SAN JOSE, Calif. -- NeoPhotonics Corporation (NYSE:NPTN - News), a leading designer and manufacturer of photonic integrated circuit, or PIC, based modules and subsystems for bandwidth-intensive, high speed communications networks, and Santur Corporation, a leading designer and manufacturer of Indium Phosphide (InP) based PIC products, today jointly announced that they have entered into a definitive agreement under which NeoPhotonics will acquire privately held Santur Corporation. Santur is a world leader in high-performance tunable laser arrays for metro and long-haul DWDM systems and a leading developer of PIC-based products for 40Gbps and 100Gbps client side and coherent line side applications.

NeoPhotonics has agreed to pay an estimated $39.2 million in cash for Santur, after deductions for closing costs and other adjustments, plus up to $7.5 million additional cash contingent on the financial performance of Santur products subsequent to closing of the transaction through the end of 2012.

“Santur has developed innovative indium phosphide (InP) based photonic integration products that are critical elements in 100G coherent transmitters and that complement the NeoPhotonics PIC-based 100G coherent receiver product line,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “By combining active InP PICs from Santur with our hybrid PICs, we can provide our customers with new products for 100G coherent systems that feature higher levels of integration, higher performance and greater functionality. Furthermore, Santur’s advanced tunable laser products also fit with our Speed and Agility product lines, enabling us to provide customers more complete solutions for reconfigurable networks,” continued Mr. Jenks.

NeoPhotonics Corp. (NYSE: NPTN)