Finisar Corporation is to acquire Infineon’s fibre optics business unit based in Munich, Germany for 135 million shares of Finisar common stock.
Following the $263 million transaction, Infineon will hold a 38% equity interest in Finisar.
The deal specifies that Infineon’s fibre optic development, manufacturing, and certain marketing operations, as well as approximately 1,200 employees, will be transferred to Finisar.
This includes Infineon’s fibre optics development, manufacturing and marketing arms in Berlin, Munich and Regensburg, in Germany, as well as manufacturing facilities in Trutnov (Czech Republic), development and marketing activities in Longmont and San Jose in the US and Infineon’s stake in the ParoLink joint venture with UEC in Taiwan.
In the second quarter ended March 31, 2004, the fibre optics business posted revenues of approximately $32 million.
This is the second large acquisition that Finisar has made this year. On January 27, the company announced that it was to acquire Honeywell’s VCSEL Optical Products business, based in Richardson, TX, for approximately $75 million in cash.