Finisar buys Infineon’s fiber-optics unit
Fiber-optic manufacturing is to undergo further consolidation, with the US company Finisar planning to buy Germany-based Infineon Technologies fiber optic business unit.
Infineon had indicated some months back that the business unit was up for sale (see related story).
Finisar, which has also acquired Honeywell’s VCSEL business in recent months, will acquire the Infineon operation by transfer of 135 million shares, assuming shareholder approval.
The value of the deal was estimated at $263 million initially, although Finisar’s share price did drop after details of the acquisition were announced.
After the transaction is closed, which is expected in the third calendar quarter of this year, Infineon will hold a 38% share in Finisar.
The acquisition involves approximately 1200 Infineon employees, as well as the company’s fiber-optic development, manufacturing, and certain marketing activities.
In the quarter ended March 31 this year, Infineon’s fiber-optic unit posted $32 million revenue. Finisar’s revenue for its most recent quarter is expected to come in at $55-60 million.
The companies say that the combined entity would create “the largest pure-play optical components company in the world”.
Finisar president and CEO Jerry Rawls said that the combined operation would be a good fit: “About 40% of Infineon’s business is in markets where we currently don’t compete, including the automotive industry and fiber-to-the-home,” he commented.
The acquisition includes Infineon Fiber Optics’ manufacturing facilities in the German cities of Berlin and Munich, as well as in Trutnov, Czech Republic. Also included is Infineon’s stake in the ParoLink joint venture with UEC in Taiwan, which is focused on component development.
