Finisar Corporation and Infineon Technologies announced today that they have entered into an agreement under which Finisar will acquire certain assets from Infineon’s Berlin-based fibre optics business unit.
Under the terms of the $50 million agreement, Finisar will issue 34 million shares for the assets associated with the design, development and manufacture of all optical transceiver products. The transaction will close no later than January 31, 2005. Immediately following the close, Infineon will have a 13% equity interest in Finisar.
According to a joint statement, the acquisition will involve the transfer of inventory, fixed assets and intellectual property associated with the design and manufacture of fibre optic transceivers including a range of 10 gigabit transceiver designs for XPAK, X2, XENPAK and XFP form factors.
Infineon will retain ownership of its other businesses consisting of BIDI components for FTTH applications, parallel optical components (PAROLI) and plastic optical fibre (POF) components that are used in automotive applications.
Under separate supply agreements, Infineon will provide Finisar with contract manufacturing services for up to one year following the close of the deal.
“This acquisition considerably broadens our customer and product portfolio, particularly our 10Gig product platforms,” said Jerry Rawls, Finisar’s President and CEO. “We stand ready to fully support Infineon’s current customer base and look forward to making this an easy transition for them.”
“The transaction supports the ongoing consolidation of the fibre optic market, and is the first major step towards the restructuring of our fibre optic group in order to return to profitability.” commented Dr. Ziebart, President and CEO of Infineon Technologies. “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.”