NeoPhotonics completes Santur buy

October 14, 2011 – BUSINESS WIRE — NeoPhotonics Corporation (NYSE:NPTN), photonic integrated circuit (PIC) modules and subsystems maker, completed the acquisition of privately held Santur Corporation, a designer and manufacturer of Indium Phosphide (InP) PIC products.

NeoPhotonics 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.

“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,” said Tim Jenks, Chairman and CEO of NeoPhotonics.

Santur is located in Fremont, CA, and is focused on commercializing PIC-based laser array and packaging technologies for communications. It was founded in 2000. Santur’s technology includes established telecom designs offering elegant approaches to wide tunability as well as high speed transceivers. Santur products are designed to provide reduced size, power consumption and cost for a wide range of DWDM, Coherent and Client Side networking applications in 10G, 40G and 100G networks.

NeoPhotonics also announced that, in connection with the acquisition of Santur Corporation, the company granted special inducement grants under the NeoPhotonics 2011 Inducement Award Plan to retain certain Santur employees (118 in total) as employees of the NeoPhotonics group. The company granted an aggregate of 466,450 stock options, each of which vests 25% on the first anniversary of the closing of the Santur acquisition and the remainder in thirty-six substantially equal monthly installments thereafter, subject to such employees being employed by the NeoPhotonics group on the vesting dates. The stock options were granted effective upon the acquisition closing date, have a ten year term and an exercise price equal to $5.97 per share, which was the closing price of NeoPhotonics common stock on the New York Stock Exchange on the date of grant. The stock options were approved by the Compensation Committee of NeoPhotonics board of directors and were granted as a material inducement to employment with the NeoPhotonics group.

The NeoPhotonics Board of Directors approved the 2011 Inducement Award Plan based on the employment inducement exemption provided under the NYSE listing standards. As a result, the 2011 Inducement Award Plan did not require shareholder approval, and this press release is being issued pursuant to applicable NYSE guidance.

NeoPhotonics designs and manufactures PIC-based modules and subsystems for bandwidth-intensive, high-speed communications networks. Learn more at


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