Optical Semiconductor Giant Announced: Split Photonics Business Independent Listing!

Sivers Semiconductors, a leading provider of integrated chips and photonic modules for communications and sensing solutions, recently announced a major strategic move:
It will divest its subsidiary Sivers Photonics Ltd, which has now entered into a non-binding letter of intent (LOI) with byNordic Acquisition Corporation, with the plan to achieve a separate listing by way of merger.
The move is intended to create a standalone, publicly traded photonics company and, with the divestment of the SPAC structure, to put the combined company on a solid financial footing and ensure adequate cash flow.
Sivers Semiconductors is comprised of two wholly owned subsidiaries that specialize in two market segments, wireless and photonics. Sivers Photonics, a leader in semiconductor photonic devices, focuses on the development of Indium Phosphide (InP) laser source technology to provide customized laser solutions for high-growth areas such as data centers, consumer healthcare, and automotive LIDAR, empowering AI infrastructure and advanced sensing applications.
Relying on over 25 years of R&D accumulation, Sivers Photonics has built a unique technology system with a team of 80 elites including 12 PhDs. The company holds a number of patents worldwide and has partnered with leaders in the silicon photonics (SiPh) field, such as Ayar Labs, to explore the path of innovation in high-performance lasers. The company has also initiated in-depth exchanges with a number of artificial intelligence giants and supercomputing companies for future development.
Following the spin-off and merger, Semiconductors' wireless business segment will focus on the development and sale of millimeter-wave beamforming front-end integrated circuits, RF transceivers, repeaters, and software algorithms for satellite and 5G infrastructure. This segment achieved significant net revenue growth to approximately $15 million in 2023, demonstrating strong market competitiveness and growth potential.
Sivers Photonics holds a leading position in direct chip integration of tunable multi-wavelength lasers, and the market for inter-chip connectivity is expected to explode as the demand for GPUs for generative AI surges.
According to industry forecasts, the total related market size is expected to reach billions of dollars by 2027. In the face of this broad prospect, Sivers Photonics, with its technological advantages, is actively laying out silicon photonics solutions for data centers, aiming to improve data transmission efficiency and significantly reduce energy consumption through optical transmission technology.
In addition, Sivers Photonics has also made achievements in the field of consumer biometric sensors, and its photonic laser technology is driving the innovation and development of wearable health products. The company has signed over $18 million in development contracts with key customers to optimize and upgrade biometric sensors. Although the market is still in its infancy, Sivers Photonics has built a unique competitive advantage in the field with its deep R&D capabilities.
We firmly believe that there is unlimited potential in the AI photonics space, but that this potential is often overshadowed by the equally impressive wireless business," said Bami Bastani, Chairman of Sivers Semiconductor. Given the tremendous potential of silicon photonics in AI infrastructure and the emerging demand for photonic biometric sensors, we believe it is time to separate our photonics business to better access the U.S. capital markets and create more value for our shareholders. At the same time, we will continue to capitalize on the strengths of our wireless business in satellite and 5G to drive the overall growth of the company."
Upon completion of this transaction, Sivers Photonics will serve as a separate U.S.-listed entity, more closely aligned with the core of the U.S. AI ecosystem, making it easier to attract the attention of investors, customers and partners. Given that Sivers Photonics currently generates approximately 80% of its net revenue from the U.S. market, this strategic alignment will undoubtedly provide a strong impetus for its future growth.
Under the terms of a non-binding letter of intent, byNordic and Sivers intend to enter into a definitive agreement to acquire Sivers Photonics. the completion of the business combination is subject to the completion of due diligence, the negotiation and execution of definitive documents and the satisfaction of the conditions contained therein, including (i) securing certain contemporaneous financings, (ii) the completion of any required stock exchange and regulatory reviews, and (ii) the completion of any required stock exchange and regulatory reviews. and regulatory reviews, and (ii) obtaining the approval of the boards of directors and shareholders of byNordic and Sivers Photonics.
The terms of the proposed transaction provide that Sivers Photonics will be spun off and merged with byNordic, and that the merged public company will be owned by the former shareholders of Sivers Photonics and byNordic, with Sivers owning a majority of the combined public company. Once the merger is completed, the company plans to establish its headquarters in Silicon Valley, California, with manufacturing operations remaining in the United Kingdom.
Sivers management will update this announcement when there is further clarity on these issues. In the interim, given the sensitive nature of the negotiations, Sivers management will not provide further comment beyond what is described in the press release. setterwalls and Pillsbury Winthrop Shaw Pittman LLP are serving as legal counsel to Sivers Semiconductor Corporation. loeb & loeb LLP is serving as the legal advisor to byNordic Acquisition Corporation. Loeb & Loeb LLP is serving as legal counsel to byNordic Acquisition Corporation.