SUNNYVALE, Calif., Jan. 25 -- Finisar Corp. and Infineon Technologies AG, of Munich, Germany, announced Monday that Finisar will acquire certain assets from Infineon's fiber optics business unit, based in Berlin. Under the terms of a definitive 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 January 21.
The transaction has been approved by Finisar's Board, does not require shareholder or regulatory approval and will close no later than Jan. 31, the companies said. Immediately following the closing, Infineon will have an equity interest in Finisar of approximately 13 percent.
The companies said they have agreed to release each other from any claims and payments associated with all prior agreements under which Finisar would have acquired Infineon's entire fiber optics business unit. (See also: Finisar Denies it Breached Agreement)
The acquisition will involve the transfer of inventory, fixed assets and intellectual property associated with the design and manufacture of fiber optic transceivers, including a wide variety of 10-Gb transceiver designs for XPAK, fiber-to-the-home applications, parallel optical components and plastic optical fiber components used in automotive applications.
Under separate supply agreements, Infineon will provide Finisar with contract manufacturing services for up to one year following the closing.
Wolfgang Ziebart, president and CEO of Infineon Technologies AG, said, "The transaction supports the ongoing consolidation of the fiber optic market, and is the first major step towards the restructuring of our fiber optic group in order to return to profitability. The POF operations, which we retain, complements our automotive strategy and will be now integrated into our Automotive and Industrial Multi Market Business Group."
For more information, visit: www.finisar.com