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Russian investment firm backs NeoPhotonics

16 May 2012
 
A Russian sovereign technology fund has acquired $40 million (€31.4 million) worth of newly-issued common shares in the photonic integrated subsystem developer NeoPhotonics.  The purchase price represented a 78% premium over the company's share price at the time the deal was announced.  
 
NeoPhotonics says it added sales capability in Russia a few years ago, and has been supplying several customers in the region.  With the proceeds of the new investment, the company plans to expand further into the Russian market by establishing design and production capabilities there.  The new site is expected to be operational by the end of July 2014.
 
"We welcomed this investment as it aligns with our strategy to accelerate growth globally, with particular emphasis on fast growing and emerging markets, including in Russia and the CIS countries." said Tim Jenks, chairman, president and CEO of NeoPhotonics. "Not only are these markets deploying high-speed, agile and fiber-to-the-home networks but we are also seeing more of our customers target service providers and invest locally in Russia and more broadly in Eastern Europe."
 
Sergey Polikarpov, Rusnano managing director, has been appointed to NeoPhotonics’ board of directors.
 
“One of the unique advantages of NeoPhotonics is its vertically-integrated design and manufacturing processes for photonic integrated circuit-based products,” he said. “The company’s planned research and production facilities in Russia are intended to be able to perform a wide range of steps from PIC development to processing and fabrication. We believe that with our support in Russia, we can further enhance the company’s development cycles and shorten the time for broader adoption for NeoPhotonics products in Russia and the global market.”
 
By Pauline Rigby