Agave Partners advises Calient on sale to Suzhou Chunxing Precision Mechanical Co., LTD.
September 13 2017
Agave Partners, the Silicon Valley cross-border investment banking specialists, today announced it has acted as the exclusive Financial Advisor to CALIENT Technologies in its sale to Suzhou Chunxing Precision Mechanical Co., Ltd (Chunxing), a China based leader in precision manufacturing for telecommunications and IT products.
Chunxing will buy 51 percent of CALIENT Technologies, a U.S. based developer of photonic Optical Circuit Switches (OCS) at $290m valuation and will acquire the remaining shares through multiple transactions in the future.
Atiq Raza, CEO of CALIENT Technologies, (former President of AMD) said, “Robert Marassa and Huan Wang, our bankers with Agave Partners, provided superlative representation to CALIENT in all aspects of the transaction from identifying a highly synergistic acquirer in Chunxing to successfully bridging the US-China cultural gap through negotiations enabling a positive result for all parties.”
Robert Marassa, Managing Director of Agave Partners said, “The Agave team is honored to play our part in putting together Chunxing and CALIENT. We are especially proud of this accomplishment by our highly talented China team. Marrying innovative Silicon Valley technology with Chinese high volume precision manufacturing should position CALIENT to lead the OCS market.”
Subject to final regulatory approval in China, the deal will position CALIENT as the Global leader in the emerging OCS market enabling the company to rapidly expand manufacturing with Chunxing in China. Furthermore the transaction will strengthen CALIENT’s balance sheet and provide the Company with a broader global presence for enhanced customer support and increased global sales force.
About CALIENT Technologies
CALIENT Technologies is the global leader in pure photonic Optical Circuit Switching with systems that enable dynamic optical layer optimization in next generation data centers and software defined networks. CALIENT’s 3D MEMS switches allow data center operators to dramatically improve utilization rates of expensive compute resources which typically account for 75% to 90% of capital investment. Data center operators and metro service providers also deploy CALIENT switches at the edges of their networks to facilitate multi-layer network optimization for maximum efficiency and flexibility. In this application, the optical circuit switches support network-wide implementation of SD-WAN regardless of the vendor or vintage of the optical transport system. The company designs and manufactures its systems using the state of art MEMS fabrication equipment at its corporate headquarters in Santa Barbara, California.
About Suzhou Chunxing Precision Mechanical Co., Ltd
Founded in 2001, Chunxing is incorporated and headquartered in Suzhou, Jiangsu Province of the People’s Republic of China, and is publicly traded on the Shenzhen stock exchange (ticker: 002547). Chunxing is principally engaged in the manufacturing of precision aluminum and magnesium alloy structures as well as 3D glass, plastic structures for telecommunication, consumer electronics/IT, automobile and industrial market segments. Its products mainly include precision die casting products, machining products, 3D glass products, stamping sheet metal parts and plastic injection parts. Chunxing is also engaged in the business of designing, manufacturing & distributing RF conditioning products for wireless telecommunication infrastructure. Its products include cavity filters & duplexers; ceramic filters & duplexers; couplers & combiners; tower mounted amplifiers; active modules; and waveguide duplexers, combiners, couplers, isolators, and flexible waveguides. Chunxing’s main manufacturing facilities are located in China. The company also has manufacturing facilities or sales offices in the United States, Canada, Finland, Poland, the United Kingdom, India and Hong Kong.
For more information, visit Chunxing at www.chunxing-group.com
About Agave Partners
Agave Partners, the Silicon Valley cross-border investment banking specialists, acts as a catalyst in Transactions for US, European and Asian companies. We advise on M&A, Corporate financing and Strategic Partnerships for leading high-tech companies in their international expansion phase. Agave Partners is the marketing name for Agave Partners LLC and its subsidiaries Agave Partners Advisors and Agave Advisors (Beijing). US regulated transactions are through Agave Partners Advisors, LLC, a FINRA regulated firm and SIPC member.
For more information, visit Agave at http://www.agaveph.com/