WAYNE, N.J. " Indium phosphide optical component developers ASIP Inc. and Three-Five Photonics B.V. have inked a merger agreement that will combine the two organizations under a unified company carrying the ASIP name. At the same time, the new organization has received an additional $7.5 million to cap off a $23.5 million Series C round.
The companies have been traveling greatly different financial paths over the past six months. As ASIP prepared to tell the market in July that it had raised an additional $16 million in financing, Three-Five filed suspension of payment paperwork in The Netherlands, placing the company in bankruptcy.
Several weeks after receiving $16 million, ASIP began evaluating Three-Five's assets. While ASIP focused on developing InP-based light sources for the optical networking market, Three-Five focused its attention on the receive side of the chain, developing InP-based detector products, "It just made sense to merge the two companies," said Mike Decelle, president and CEO of ASIP.
In conjunction with the merger, Three-Five's investors Atlas Venture and Gilde IT Fund agreed to provide ASIP with an additional $7.5 million, bringing the company's total series C round up to the $23.5 million total.
Through the merger, ASIP will deliver distributed feedback lasers, electro-absorption modulators, photodetectors, semiconductor optical amplifiers and arrayed waveguides. The company will also have a worldwide focus.
Prior to the acquisition, ASIP had focused mostly on the U.S. sector while Three-Five targeted the European and Asian sectors. "This merger improves ASIP's entrees in the European and Asian sectors," Decelle said.
Once the acquisition is complete, ASIP will mergethe staffs of both companies, or approximately 35 employees. The merged company will be headquartered in Somerset, N.J. Financial terms of the deal were not released.