Germany Rejects Coherent Purchase
SANTA CLARA, Calif., Oct. 26, 2006 -- Coherent Inc. announced Wednesday it received a prohibition order from the German Federal Cartel Office (FCO) regarding its proposed acquisition of Excel Technology Inc.
Coherent, which makes lasers and other devices used in chips, CDs and scientific instruments and has an operations center in Auburn, proposed the $376 million deal to buy Long Island, N.Y.-based Excel in February. The acquisition had been approved by the US Department of Justice in May. (See also "Excel OKs Coherent Acquisition".)
Coherent said in a statement that none of the multiple remedy proposals offered by Coherent to the FCO addressing the overlap in the low-power carbon-dioxide laser market were satisfactory to the FCO.
John Ambroseo, Coherent’s president and CEO, said, “While we are clearly very disappointed and disagree with the FCO’s decision, we remain committed to accomplishing acquisitions that meet all our criteria for growth, diversification and financial performance. Coherent remains focused on executing on the underlying fundamentals of our business and meeting the future needs of our customers."
The deal required German approval because of Coherent's revenue base there.
Excel, which makes and markets photonics-based solutions consisting of laser systems and electro-optical components, was informed of the decision by Coherent, the company said in a press release.