SAN JOSE, Calif., Jan. 19 -- JDS Uniphase Corp. and E-TEK Dynamics Inc. have signed a definitive merger agreement that would result in E-TEK operating as a wholly owned subsidiary of JDS Uniphase. The agreement calls for the exchange of 1.1 shares of JDS Uniphase common stock for each common share of E-TEK. Completion of the merger -- valued at approximately $15 billion, based on closing stock prices as of January 14, 2000 -- is subject to customary closing conditions, including regulatory approvals and a vote by E-TEK stockholders.
The companies said the merger plans stem from growth in the telecommunications industry; accelerated deployment of fiber optic systems in service providers' networks has led to increased demand by systems manufacturers. JDS Uniphase and E-TEK Dynamics said they expect the merger to allow them to maximize their complementary strengths and to facilitate a more rapid scaling of operations that will bring greater volume and a broader range of products to customers faster.