POET Completes Acquisition of Super Photonics
Deal News | Dec 31, 2024 | EIN
On December 31, 2024, POET Technologies Inc., a leading designer and developer of photonic integrated circuits, completed its acquisition of Super Photonics Integrated Circuit Xiamen Co., Ltd. (SPX). This acquisition involved the purchase of remaining minority interests held by Quanzhou San'an Optical Communication Technology Co. and took POET's ownership of SPX to 100%. This step aligns with POET's strategic endeavor to boost its manufacturing capacity for optical engines fundamental to meeting the burgeoning demands of AI-driven hyperscale data centers. The acquisition of SPX complements POET's collaboration with Globetronics in Malaysia to bolster its annual production capacity beyond one million optical engines, earmarked for high-speed transceivers necessary for modern AI networks. In executing its China Plus One strategy, POET intends to consolidate SPX’s financial results with its own, presenting a unified brand front in China while considering a potential merger with POET Optoelectronics Shenzhen Co. Ltd. The acquisition entailed an equity transfer agreement involving a $6.5 million phased payment agreement with Sanan over five years. Additionally, POET has purchased production equipment from Sanan for $3.8 million, enhancing control over manufacturing processes. Future plans may involve renaming SPX and potential integration with existing subsidiaries, aligning with POET's broader goal to capture a larger share of the AI hardware market.
Sectors
- Semiconductors
- Technology and Telecommunications
- Artificial Intelligence
Geography
- Canada – POET Technologies is headquartered in Toronto, indicating significant operational and strategic decisions are headquartered in Canada.
- China – The acquisition target, SPX, is located in Xiamen, China, and is central to POET's manufacturing and market strategy in the region.
- Malaysia – POET has a manufacturing agreement with Globetronics in Penang, Malaysia, contributing to its global production strategy.
Industry
- Semiconductors – This industry is concerned with the design and manufacturing of semiconductor devices and circuits, notably relevant due to POET's focus on Photonic Integrated Circuits.
- Technology and Telecommunications – This broad sector encompasses the infrastructure and development for telecommunications and high-performance AI networks, where POET plays a significant role with its advanced optical engines.
- Artificial Intelligence – Pertinent to the article, as the demand for POET’s optical engines is driven by the requirements of AI networks in data centers.
Financials
- 6.5 million USD – This is the total consideration for the equity transfer from Sanan to POET, to be paid over five years.
- 3.8 million USD – The cost of acquiring production equipment from Sanan, paid in cash and in installments.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| POET Technologies Inc. | Acquirer | Company | POET is a design and development company offering high-speed optical technologies to AI systems and data centers. |
| Super Photonics Integrated Circuit Xiamen Co., Ltd. (SPX) | Target | Company | SPX is a company involved in optical component manufacturing, formerly a joint venture with SAIC, now fully owned by POET. |
| Quanzhou San'an Optical Communication Technology Co., Ltd. (SAIC) | Vendor | Company | SAIC was the partial owner of SPX and participated in the selling of its equity to POET. |
| Globetronics Manufacturing Sdn. Bhd (GMSB) | Manufacturing Partner | Company | GMSB is involved in manufacturing optical engines for POET in Malaysia. |