Finisar announces acquisition of Demeter Technologies
Demeter Technologies, headquartered in El Monte, California, is focused on the development of long wavelength Fabry Perot (FP) and Distributed Feedback (DFB) lasers for datacom and telecommunications applications.
Demeter Technologies was founded in August 2000. The founders of Demeter have extensive experience in manufacturing laser diodes in large volumes.
With its early access to semiconductor processing equipment for epitaxial growth and ability to employ world class manufacturing techniques, Demeter has already demonstrated state-of-the-art laser diodes that can be directly modulated at speeds up to 10 gigabits per second.
With the acquisition of Demeter, Finisar gains access to this fundamental technology in its quest to extend its capabilities as a provider of next generation fiber optic network equipment for Gigabit Ethernet, Fibre Channel and SONET.
"Demeter adds another dimension to the Finisar story," said Jerry Rawls, Finisar s President and CEO. "As a vertically integrated manufacturer of FP and DFB lasers, Demeter will play a key role in our strategy to bring new low cost solutions for datacom networks and metropolitan access," added Rawls.
"With Finisar s reputation for developing high-speed optics for Fibre Channel and Gigabit Ethernet networks and our ability to provide the lasers that will power a new generation of high-speed fiber optic subsystems, we should be able to accelerate our plans to become an important merchant supplier of emitter technology to both Finisar and others," said Ted Young, Demeter s President and CEO.
Under the terms of the agreement, Demeter Technologies merged with a wholly-owned subsidiary of Finisar, and Demeter s stockholders received approximately 6.6 million shares of Finisar Common Stock, including shares issuable upon exercise of options assumed in the merger. The transaction will be accounted for as a purchase and is intended to qualify as a tax-free reorganization. The closing price of Finisar s Common Stock on November 20, 2000 was $22.13 per share, giving the transaction an approximate value of $146 million. The acquisition was completed on and will be included in the financial results of Finisar for the third fiscal quarter ending January 31, 2001.
Following the merger, Demeter Technologies will operate as a subsidiary of Finisar at its current facility in El Monte, California. Ted Young, Demeter s President and CEO, will continue to serve as President and CEO of the Demeter Technologies subsidiary.
