Avanex Corporation has announced that it is to acquire the optical components businesses of Alcatel and Corning in combined transactions valued at approximately $63.5 million. The sale price is based on Avanex’s May 9, 2003 closing price of $1.12 per share.
The acquisitions by Avanex will combine the optical business capabilities of three of the industry’s leading providers of optical components, modules and subsystems for fibre optic transmission networks. The transaction will also enable Avanex to offer one of the broadest lines of advanced optical technologies and intelligent photonic solutions to enhance the speed and capacity of optical communications systems.
After the acquisitions, Avanex will offer products that address optical wavelength generation and modulation, multiplexing and demultiplexing, signal amplification, wavelength routing and dispersion compensation. Avanex estimates that after the acquisitions, it will have over $250 million in cash and 1,600 employees on the closing date.
As part of this transaction Avanex will acquire all outstanding equity of Alcatel’s optical components division, including operations located in France and the United Kingdom.
Assets to be purchased from Corning include optical amplifier, dispersion compensation and micro optics operations located in New York and Corning modulator operations located in Italy.
Alcatel and Corning will assign approximately 1,400 patents to Avanex and license several thousand patents to Avanex as part of the transaction.