MANHASSET, NY -- Russian government entity Rusnano has acquired 4.97 million newly-issued common shares of San Jose, Calif.-based NeoPhotonics Corp. in a private placement transaction worth $39.8 million.
NeoPhotonics designs and manufactures photonic integrated circuit-based modules and subsystems for bandwidth-intensive, high speed communications networks. Rusnano is a $10 billion sovereign investment corporation located in Moscow, Russia.
The shares are restricted from resale pursuant to a lockup agreement for up to two years, at the end of which the NeoPhotonics is obligated to register the shares for potential resale.
Sergey Polikarpov, Rusnano Managing Director, has been appointed to NeoPhotonics board of directors.
“We started to see and investigate this growth opportunity several years ago, and we added sales capability in the region and have since been engaged with and supplying several customers in Russia,” said Tim Jenks, chairman, president and CEO of NeoPhotonics, in a statement. “With the planned support from Rusnano, we believe that NeoPhotonics is well-positioned to capitalize on new and greater opportunities in the region.”
NeoPhotonics plans research and production facilities in Russia. The expansion in Russia is targeted for completion by July 31, 2014.
“We believe that with our support in Russia, we can further enhance the NeoPhotonics’ development cycles and shorten the time for broader adoption for NeoPhotonics products in Russia and the global market,” said Polikarpov.
NeoPhotonics has ISO 9001:2000 certified engineering and manufacturing facilities in Silicon Valley and Shenzhen, China.
Rusnano’s mission is to develop the Russian nanotechnology industry through co-investment in nanotechnology projects. Over the last three years, Rusnano has invested in companies with knowledge in memory, MEMS, communications, plastic electronics, and photovoltaics.
At the upcoming Semicon Russia 2012 May 15,16 Rusnano will take part in a panel discussion on the subject of Semiconductor Ecosystem in Russia. It will be moderated by SEMI Europe President Heinz Kundert with participation of ST Microlectronics, --who has manufacturing agreements with Russian companies--, and other panelists.
Rusnano is Russia's last best hope for creating a viable hi-tech infrastructure with government funding. Through the Russian Venture Fund, some 10-15 new venture funds aim to provide venture capital for up
to 200 new innovational companies.