EMCORE Announces Closing of the Acquisition of the L3Harris Space and Navigation Business for $5 Million
May 02 2022 - 8:30AM
EMCORE Corporation (Nasdaq: EMKR), a leading provider of advanced
mixed-signal products that serve the aerospace & defense,
communications, and sensing markets, announced today that it has
completed the acquisition of the L3Harris (NYSE: LHX) Space and
Navigation business for approximately $5 million in an all-cash
transaction, subject to any net working capital adjustments.
The acquisition provides an immediate contribution of additional
scale in this market and expands EMCORE’s inertial navigation
product portfolio and addressable market with the addition of
navigation and strategic grade gyro and inertial measurement unit
products. EMCORE acquired all outstanding assets and liabilities of
the L3Harris Space and Navigation business, including all L3Harris
intellectual property rights primarily used in the Space and
Navigation business, a 110,000 square foot leased production
facility in Budd Lake, NJ, and associated production equipment.
In addition, the transaction creates partnership opportunities
to expand EMCORE’s business with L3Harris, adding EMCORE as a
preferred supplier to L3Harris divisions for future business
opportunities and resulting in entry into a Master Supply Agreement
for the BoRG (Booster Rate Gyro) and TAIMU (Tri-Axial Inertial
Measurement Unit) launch vehicle programs.
”We are extremely pleased to welcome Space and Navigation’s
expert team, strong brand, inertial technology, and important
program wins,” said Jeff Rittichier, President and CEO of EMCORE.
“This acquisition allows us to provide customers with an expanded
product suite across the tactical, navigation, and strategic grade
segments of the market, including the growing launch vehicle and
space satellite markets.”
About EMCORE EMCORE Corporation is a leading
provider of advanced mixed-signal products that serve the aerospace
& defense, communications, and sensing markets. Our
best-in-class components and systems support a broad array of
applications including navigation and inertial sensing, defense
optoelectronics, broadband communications, optical sensing, and
specialty chips for telecom and data center. We leverage
industry-leading Quartz MEMS, Lithium Niobate, and Indium Phosphide
chip-level technology to deliver state-of-the-art component and
system-level products across our end-market applications. EMCORE
has vertically-integrated manufacturing capability at its wafer
fabrication facility in Alhambra, CA, and Quartz MEMS manufacturing
facility in Concord, CA. Our manufacturing facilities maintain ISO
9001 quality management certification, and we are AS9100 aerospace
quality certified at our facility in Concord. For further
information about EMCORE, please visit http://www.emcore.com.
Forward-looking statements:The information
provided herein may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. Such
statements include statements regarding the anticipated benefits,
including anticipated revenue, of EMCORE’s acquisition of the Space
and Navigation business from L3Harris Technologies, market trends
and the anticipated relationship with L3Harris Technologies
following the transaction. These forward-looking statements are
based on management's current expectations, estimates, forecasts,
and projections about EMCORE and are subject to risks and
uncertainties that could cause actual results and events to differ
materially from those stated in the forward-looking statements,
including without limitation, the following: (a) uncertainties
regarding the effects of the COVID-19 pandemic and the impact of
measures intended to reduce its spread on our business and
operations, which is evolving and beyond our control; (b) the
rapidly evolving markets for the L3Harris Space and Navigation
business and EMCORE's products and uncertainty regarding the
development of these markets; (c) EMCORE's and the L3Harris Space
and Navigation business’s historical dependence on sales to a
limited number of customers and fluctuations in the mix of products
and customers in any period; (d) delays and other difficulties in
commercializing new products; (e) the failure of new products: (i)
to perform as expected without material defects, (ii) to be
manufactured at acceptable volumes, yields, and cost, (iii) to be
qualified and accepted by our customers, and (iv) to successfully
compete with products offered by our competitors; (f) uncertainties
concerning the availability and cost of commodity materials and
specialized product components that we do not make internally; (g)
actions by competitors; (h) acquisition-related risks, including
that (i) the revenues and net operating results obtained from the
L3Harris Space and Navigation business may not meet our
expectations, (ii) the costs and cash expenditures for integration
of the L3Harris Space and Navigation business operations may be
higher than expected, (iii) there could be losses and liabilities
arising from the acquisition of the L3Harris Space and Navigation
business that we will not be able to recover from any source, and
(iv) we may not realize sufficient scale in our inertial navigation
product line from the acquisition of the L3Harris Space and
Navigation business and will need to take additional steps,
including making additional acquisitions, to achieve our growth
objectives for this product line and (i) other risks and
uncertainties discussed under Item 1A - Risk Factors in our Annual
Report on Form 10-K for the fiscal year ended September 30, 2021,
as updated by our subsequent periodic reports. Forward-looking
statements contained in this press release are made only as of the
date hereof, and EMCORE undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:EMCORE Corporation
Tom MinichielloChief Financial Officer(626)
293-3400investor@emcore.com
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