PhillyInc: A missed IPO opportunity, but CyOptics lands on its feet

Posted: April 13, 2013

Two years ago, CyOptics Inc. was looking to go public and raise $100 million, but it dropped those plans last May.

On Thursday, the Lehigh County maker of optical components agreed to be acquired for $400 million. The buyer? A cash-rich Singapore company called Avago Technologies Inc.

It's telling that Avago was able to pull off its initial public offering during one of the worst years for such financings (2009), while CyOptics couldn't squeak through the IPO window during the year when Facebook went public - the biggest tech IPO ever.

In IPOs, timing is everything.

But that's not to say CyOptics, which has its headquarters, manufacturing, and R&D in Breinigsville, missed out on raising $100 million. TA Associates, a Boston private-equity firm, reportedly injected that sum into CyOptics in 2012.

Also, business has been pretty good for CyOptics of late, with revenue more than tripling over the last three years to about $210 million in 2012, the companies said in a statement.

Avago, with U.S. headquarters in San Jose, Calif., is by far the bigger company, having reported $2.36 billion in net revenue for its most recent fiscal year. But venture-backed CyOptics has technologies and manufacturing abilities that Avago says will help it compete for business in the growing enterprise and data-center markets.

The deal will mean a payout for those venture-capital investors, led by Jerusalem Venture Partners and TA Associates. TL Ventures, of Wayne, was an early investor in CyOptics.

It's too soon to say what this transaction will mean for the several hundred employees of CyOptics, which has Bell Labs and Lucent DNA in its corporate genes.

Correction

In my April 1 column, the federal Small- Business Administration provided the incorrect date for its "speed-dating" event between lenders and small-business borrowers. It will be Tuesday at the Radisson Hotel Valley Forge.


Contact Mike Armstrong

at 215-854-2980 or marmstrong@phillynews.com, or follow on Twitter @PhillyInc. Read his blog, "PhillyInc," at www.phillyinc.biz.

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