News Article
Infineon/Finisar fibre optics deal back on track
Despite recent announcements to the contrary Finisar Corporation and Infineon Technologies have entered into a definitive agreement under which Finisar will acquire certain assets from Infineon's fibre optics business unit based in Berlin, Germany.
Despite recent announcements to the contrary Finisar Corporation and Infineon Technologies have entered into a definitive agreement under which Finisar will acquire certain assets from Infineon's fibre optics business unit based in Berlin, Germany.
The deal had apparently fallen through (as reported in Eurosemi Bulletin 568). Under the terms of this new 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, 2005.
Part of the renegotiation includes Infineon receiving an equity interest in Finisar of approximately 13%. The acquisition will involve the transfer of inventory, fixed assets and intellectual property associated with the design and manufacture of fibre optic transceivers.
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.
"This acquisition considerably broadens our customer and product portfolio, particularly our 10Gig product platforms," said Jerry Rawls, Finisar's president and CEO. "We stand ready to fully support Infineon's current customer base and look forward to making this an easy transition for them."
Infineon president and CEO Dr Wolfgang Ziebart said: "We are happy to sign this agreement today with Finisar for the sale of these assets. The transaction supports the ongoing consolidation of the fibre optic market, and is the first major step towards the restructuring of our fibre optic group in order to return to profitability.
"The POF operations which we retain complement our automotive strategy and will be now integrated into our automotive and industrial multi market business group."
In the fiscal quarter ended December 31, 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 technology included in the acquired assets.
Infineon and Finisar 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 fibre optics business unit.
Deutsche Bank Securities is acting as sole financial advisor to Finisar. Citibank is acting as a sole financial advisor to Infineon.
The deal had apparently fallen through (as reported in Eurosemi Bulletin 568). Under the terms of this new 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, 2005.
Part of the renegotiation includes Infineon receiving an equity interest in Finisar of approximately 13%. The acquisition will involve the transfer of inventory, fixed assets and intellectual property associated with the design and manufacture of fibre optic transceivers.
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.
"This acquisition considerably broadens our customer and product portfolio, particularly our 10Gig product platforms," said Jerry Rawls, Finisar's president and CEO. "We stand ready to fully support Infineon's current customer base and look forward to making this an easy transition for them."
Infineon president and CEO Dr Wolfgang Ziebart said: "We are happy to sign this agreement today with Finisar for the sale of these assets. The transaction supports the ongoing consolidation of the fibre optic market, and is the first major step towards the restructuring of our fibre optic group in order to return to profitability.
"The POF operations which we retain complement our automotive strategy and will be now integrated into our automotive and industrial multi market business group."
In the fiscal quarter ended December 31, 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 technology included in the acquired assets.
Infineon and Finisar 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 fibre optics business unit.
Deutsche Bank Securities is acting as sole financial advisor to Finisar. Citibank is acting as a sole financial advisor to Infineon.
