Cascadia Capital Represents Lenel Systems International in Sale to United Technologies

Challenge

Lightwave Electronics, a Mountain View, CA-based provider of innovative, laser-based technology solutions for materials processing, life sciences and analyses and other optical physics applications, had received strong strategic interest from several parties. As a result, Lightwave engaged Cascadia Capital to assist the Company in evaluating its strategic alternatives and recommend the Company's most viable option. Lightwave selected Cascadia because of its strong M&A process expertise, as well as its relationships across a broad base of potential buyers and investors. At the time of initial engagement, Lightwave's Board and management team was unsure of the "right time" for an exit, resulting in a need for Cascadia to help them navigate potentially interested buyers, along with their other strategic alternatives.

Solution

When Cascadia first met with Lightwave, the Company was profitable and well positioned within its end-market. Cascadia engaged in an in-depth analysis of Lightwave's strategic alternatives and came to the conclusion that a sale of the Company created the greatest shareholder value. Cascadia then accessed its public company relationships to generate additional interest in the Company, expanding the universe of potential partners.

Results

Cascadia prepared a detailed valuation analysis and defense for Lightwave, highlighting its ability to serve as a center of technical expertise within an acquiring organization. This document coupled with a competitive process allowed Cascadia to maximize valuation and optimize terms. Once final term sheets were received, Cascadia clearly summarized the advantages and disadvantages of each offer. The Company ultimately chose JDS Uniphase, the world leader in optics technologies, based on the platform opportunity it would afford Lightwave and its stakeholders. Cascadia was able to maximize value for the Company and the analyst community felt that JDS Uniphase paid a full price for the acquisition.