EMCORE Corp., a provider of compound semiconductor-based components and systems for the fiber-optic and solar power markets, says it has entered into a definitive agreement with an affiliate of private equity firm Veritas Capital, under which the affiliate has agreed to purchase EMCORE's space photovoltaics business for $150 million in cash.
The transaction is subject to approval by EMCORE's shareholders and other customary closing conditions and is expected to close in December or January. The transaction is not subject to a financing condition.
EMCORE's space photovoltaics business, based in Albuquerque, N.M., provides products for space power applications, including high-efficiency multi-junction solar cells, coverglass interconnected cells and complete satellite solar panels, along with terrestrial applications, including high-efficiency multi-junction solar cells for concentrating PV power systems. The business' fiscal 2013 revenue was $70.5 million.
In connection with the transaction, EMCORE has announced a transition plan of its CEO.
Hong Q. Hou, president and CEO, will be stepping down from his positions after having served in them since March 2008. He will continue to serve in his current roles until the company finds a successor.
He will also resign from EMCORE's board of directors, which he has been a part of since 2006. Hou first joined the company in 1998 as director of technology.