Published: Jan. 3, 2022 at 12:59 p.m. ET
By Kimberly Chin
Intevac Inc. has sold its photonics business to optical-technology company Eotech LLC in a deal valued at roughly $100 million, as the company narrows its focus on its thin-film equipment business.
The transaction consists of an up-front payment of $70 million in cash and additional future payments of up to $30 million following the deal’s closure, Intevac said. The deal was completed last week.
Intevac and Eotech have also entered into a transaction service agreement with a six-month term.
Intevac, a supplier of thin-film processing systems, said the deal was a part of a strategic review process that began in the past year.
“We have always believed in the long-term growth potential of Photonics, however with any significant new Photonics product revenue ramp still at least a couple of years away…the board of directors determined that this transaction was in the best interest of maximizing stockholder value,” Intevac Chairman David Dury said in prepared remarks.
The photonics business develops and provides advanced, high-sensitivity digital sensors, cameras and imaging systems primarily for use by the defense industry, including the U.S. military’s digital night vision programs, it said.
Write to Kimberly Chin at [email protected]