Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Finisar Corp
Edited by the Electronicstalk Editorial
Team on 13 October 2004
Finisar and Infineon modify acquisition
deal
Finisar Corp and Infineon Technologies have modified the terms of a previously announced agreement under which Finisar is to acquire Infineon's Fibre Optics Business Unit.
Finisar Corp and Infineon Technologies have modified the terms of a previously announced agreement under which Finisar is to acquire Infineon's Fibre Optics Business Unit based in Berlin, Germany The terms were modified in part due to the operating results for this business unit during the past six months
This article was originally published on Electronicstalk on 24 May 2002 at 8.00am (UK)
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Under the terms of the modified agreement, Finisar will issue approximately 110 million shares of Finisar common stock to Infineon compared with approximately 135 million shares that would have been issuable under the original agreement.
Following the transaction, Infineon will hold a 33% equity interest in Finisar.
In addition, Infineon has agreed to provide financial assistance with respect to the costs of restructuring the operations of the Fibre Optics Business Unit and integrating those operations with Finisar's following the closing.
The transaction is subject to approval by Finisar's shareholders, applicable regulatory approvals and other customary closing conditions.
Jerry Rawls, president and CEO of Finisar, and Frank Levinson, Chairman and Chief Technology Officer of Finisar, who own an aggregate of approximately 16% of the outstanding Finisar shares, have entered into agreements with Infineon to vote their shares in favour of the transaction.
The companies have already received the required antitrust clearances in the USA and Europe.
As previously announced, the acquisition will involve the transfer of Infineon's fibre-optic development, manufacturing and certain marketing activities and approximately 1200 employees.
The Infineon Fibre Optics Business Unit develops, manufactures and markets a broad range of fibre optic datacomms and telecomms modules supporting the common MSA standards, BIDI components that allow bidirectional transmission on a single fibre for fibre-to-the-home applications (FTTH), and plastic optical fibre (POF) components that are used in automotive applications, specifically, for entertainment and safety systems.
Pending the approval of Finisar's shareholders, the transaction is now expected to close in the fourth calendar quarter of this year.
At closing, Thomas Seifert, CEO of Infineon's Memory Products Group, is expected to join the Finisar Board of Directors.
Deutsche Bank Securities is acting as sole financial advisor to Finisar.
Citigroup Global Markets is acting as sole financial advisor to Infineon.
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