Finisar is acquiring certain assets from Infineon’s Fiber Optics Business Unit based in Berlin.
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. The transaction has been approved by Finisar’s Board and will close by the end of the month. Immediately following the close, Infineon will have an equity interest in Finisar of approximately 13%.
“This acquisition considerably broadens our customer and product portfolio, particularly our 10Gig product platforms,” said Finisar President and CEO, Jerry Rawls. “We stand ready to fully support Infineon’s current customer base and look forward to making this an easy transition for them.”
Under separate supply agreements, Infineon will provide Finisar with contract manufacturing services for up to one year following the close.
“We are happy to sign this agreement today with Finisar for the sale of these assets,” stated Infineon President and CEO, Dr. Ziebart. “The transaction supports the ongoing consolidation of the fiber optic market, and is the first major step towards the restructuring of our fiber optic group in order to return to profitability. The POF operations which we retain, complements our automotive strategy and will be now integrated into our Automotive and Industrial Multi Market (AIM) Business Group.”
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 Fiber Optics Business Unit.
Murdok | Breaking eBusiness News
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