OXFORDSHIRE, England, May 24 -- Bookham Technology plc announced today it is acquiring Onetta Inc., a Sunnyvale, Calif., provider of optical amplifier modules and subsystems for communications networks, in an all-share transaction valued at $23.3 million. The announcement was a made a week after Bookham said it will eliminate 600 jobs -- about a third of its work force -- at its Paignton, England, facility.
Bookham will acquire all of Onetta's privately held shares in exchange for 27.6 million shares of Bookham's stock, at a market price of about $0.85 per share.
Onetta's intelligent erbium-doped fiber amplifiers (EDFAs) incorporate advanced optics, control electronics and firmware. Bookham has made a number of recent acquisitions, including New Focus, Ignis Optics and the optical components activities of Marconi Communications and Nortel.
Giorgio Anania, Bookham's CEO, said, "We believe that strong operational and product synergies with Onetta will give rise to immediate cost-saving opportunities, since it fits well with our streamlining of manufacturing operations and cost reductions as the combination creates strong economies of scale in our amplifier production."
Bookham said it expects the acquisition to be cash-generating by the end of this year. As part of the agreement, Onetta shareholders have agreed to discharge liabilities of the company of approximately $6 million.
The job cuts result from Bookhams' transfer of its assembly operations to a Shenzhen, China, facility that it acquired from New Focus in March.
For more information, visit: www.bookham.com