Keywords
Citation
(2005), "Finisar to acquire Infineon fibre optic transceiver business; Infineon to retain POF, parallel optics and FTTH", Microelectronics International, Vol. 22 No. 2. https://doi.org/10.1108/mi.2005.21822bab.005
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited
Finisar to acquire Infineon fibre optic transceiver business; Infineon to retain POF, parallel optics and FTTH
Finisar to acquire Infineon fibre optic transceiver business; Infineon to retain POF, parallel optics and FTTH
Keywords: Electronics industry, Acquisitions and mergers
Finisar Corporation and Infineon Technologies AG, Munich have entered into a definitive agreement under which Finisar will acquire certain assets from Infineon's Fibre Optics Business Unit based in Berlin, Germany. Under the terms of the agreement, Finisar will issue 34 million shares for the assets associated with the design, development and manufacture of all optical transceiver products. The acquisition implies a valuation of nearly $50 million based on the closing price of 21 January 2005. The transaction has been approved by Finisar's Board, does not require shareholder or regulatory approval and will close no later than 31 January 2005. Immediately following the close, Infineon will have an equity interest in Finisar of approximately 13 percent.
The acquisition will involve the transfer of inventory, fixed assets and intellectual property associated with the design and manufacture of fibre optic transceivers including a broad range of 10Gb transceiver designs for XPAK, X2, XENPAK and XFP form factors. Infineon will retain ownership of its other businesses consisting of BIDI components for FTTH applications, parallel optical components (PAROLI) and plastic optical fibre (POF) components that are used in automotive applications.
Under separate supply agreements, Infineon will provide Finisar with contract manufacturing services for up to one year following the close.
In the fiscal quarter ended 31 December 2004, Infineon's Fibre Optics Business Unit recorded revenues of nearly $12 million from the sale of optical transceiver products. Finisar expects the acquisition to have a positive impact on its financial results prior to the amortisation of any purchased developed technology included in the acquired assets.