28th April 2016

Acquisition will provide POET with wafer fab, new IP and new sales channels

POET Technologies, a developer of opto-electronics fabrication processes, has signed an agreement to acquire all the shares of DenseLight Semiconductors, a Singapore-based private designer, manufacturer and provider of photonic sensing and optical light source products.

The acquisition of DenseLight will provide POET with a fab infrastructure for future product development, access to product sales and channel distribution networks and a broader product portfolio of photonic products.

DenseLight processes III-V based optoelectronic devices and photonic integrated circuits through its in-house wafer fabrication and assembly & test facilities. The company is recognised for its technological innovations in high performance semiconductor infrared super-luminescent light sources and lasers, with a proven track record in deployed applications.

Suresh Venkatesan, POET's CEO said: "This synergistic combination can provide our customers a broader range of differentiated photonics technologies. The resulting enhancement of our design, test and packaging capabilities also promises to optimise time-to-revenue for our customers. POET now has a larger product portfolio to enhance our mission of enabling integrated photonic products for our expanded end markets."

"DenseLight is tailor-made to solidify POET's goal of attaining a leadership position in III-V integrated opto-electronics technology development and manufacturing," said Jerry Rodrigues, chairman and CEO of DenseLight Semiconductors.

"We at DenseLight are delighted to be an integral part of the POET family and to play a strategic role in the company's growth plans in the rapidly developing III-V integrated opto-electronics market and particularly the exciting application demands for the Internet of Things (IOT). We are excited by the opportunities ahead of us and look forward to working closely with POET management to return stronger financial results and meaningful shareholder value."

POET intends to continue and expand the operation of DenseLight's existing manufacturing facilities in Singapore. DenseLight's operations had generated revenues of $2.6 million in 2015 with a consistent gross profit in excess of 40 percent in each of the three previous years.

POET anticipates that DenseLight as a division will achieve positive net income by fiscal 2017. DenseLight's test and reliability capabilities will be particularly valuable in accelerating New Product Introduction (NPI). Additionally, POET expects to benefit from access to DenseLight's engineers and other employees.

DenseLight's location will substantially increase supply chain efficiencies as current suppliers are located within the same geographic zone, facilitating ease of communication, interaction and real time testing on future and current product development.