Avanex divests optoelectronic fabs in France
Avanex Corporation has announced that it entered into a definitive agreement to sell a 90 percent interest in its French subsidiary, Avanex France S.A, including its Indium Phosphide (InP) and Gallium Arsenide (GaAs) semiconductor fabs to Global Research Company, a société à responsibilité limitée, owned by Alexandre Krivine, and to the current management of Avanex France S.A,
Didier Sauvage. Avanex Corporation also announced that it entered into a definitive agreement with an accredited institutional investor relating to a private placement.In addition to the previously mentioned semiconductor III-V fabs, the divested business includes the laser, terrestrial pump, submarine pump and Fiber Bragg Grating (FBG) product lines. Avanex Corporation will continue to maintain a core development group comprised of approximately 20 employees in France focused on transmission products.
"The divestiture of our fabs and certain product lines simplifies our operating structure, significantly reduces our fixed costs and accelerates our path to profitability," said Jo Major, chairman, president and CEO.
The transaction is expected to close in the second quarter of calendar 2007. Upon closing of the transaction, Avanex France S.A. will be renamed.
Mr. Krivine CEO, Avanex said, "We strongly believe in the potential and opportunity of such industrial activity in Europe and more specifically in France. We believe that with the new company's technology and expertise, it can play an international role in growing markets such as submarine and terrestrial pumps for telecommunications as well as explore new markets."
