Apple (Nasdaq: AAPL) has signed a $390 million agreement with optical components maker Finisar Corp. (Nasdaq: FNSR). Proceeds would be used to refurbish and reopen a manufacturing facility in Sherman, Texas, which in the middle of next year would begin making optical components called VCSELs (i.e., the wafers that power such new iPhone features as Face ID and Animoji.
- Why it's the BFD: Because even though the money is coming from Apple's $1 billion Advanced Manufacturing Fund — and despite many headlines to the contrary — Axios has learned that this is not an equity investment. That's why Apple's own press release refers to it as an "award," and reflects how AMF is much more of a strategic platform than a financial one.
- Ticker tape: Finisar shares were up more than 25% at market open.
- Bottom line: This is about Apple helping to create supply to meet its own demand. For context, it expects to buy 10 times more VCSELs in Q4 2017 than were made globally in Q4 2016.
Private Equity Deals
🚑 Care Advantage, a Richmond, Va.-based home healthcare services company owned by BelHealth Investment Partners, has acquired Care Solutions, a Hampton, Va.-based provider of non-skilled personal care services in the home for private pay patients. www.careadvantageinc.com
• Core Industrial Partners has acquired Prototek, a Contoocook, N.H.-based rapid prototyping service provider of machined and sheet metal parts and components. www.prototekmanufacturing.com
• Evolution Research Group, a Watchung, N.J.-based portfolio company of DFW Capital Partners, has acquired Endeavor Clinical Trials, a San Antonio, Texas-based clinical trial operator. www.endeavorct.com
⛽ KKR has provided additional capital to portfolio company Joulon, a Dubai-based provider of asset management services to the energy industry. Some of the proceeds were used to acquire Harris Pye Group, a UK-based provider of engineering and project management services to the marine, offshore and industrial sectors. www.joulon.com
• Rogue Wave Software, a Boulder, Colo.-based portfolio company of Audax Private Equity, has acquired ZeroTurnaround, an Estonia-based provider of software tools for Java developers. www.roguewave.com
• TPG Growth has acquired fitness class company StretchLab. It will be rolled into a new platform called Xponential Fitness, which also includes existing portfolio companies Club Pilates and CycleBar. http://axios.link/EBzy
• CIBC (TSX: CM) is planning to float its $2 billion Caribbean unit, FirstCaribbean, in New York, according to Reuters. http://axios.link/WYww