Optoelectronic device manufacturer II‐VI Incorporated says it has successfully completed the acquisition of Finisar Corporation, which was first announced on November 9th, 2018.
Under the terms of the merger agreement, Finisar shareholders will receive on average US$15.60 in cash and 0.2218 shares of II-VI common stock per 1.0 share of Finisar common stock depending on each shareholder’s election as laid out in the merger agreement. The financing for the transaction was US$1.9B of cash raised in a combination of Term Loans A and B with a combined interest rate of L+251 and US$1.1B of the company’s stock. Finisar shareholder will own approximately 32% of the combined company.
“Today our company is taking a giant leap forward in our scale to serve a significantly increasing addressable market,” said Dr. Vincent D. Mattera, Jr., CEO, II-VI Incorporated. “The powerful combination of II-VI and Finisar makes us the global leader in optical communications and continues our leadership in our other key end markets, with a world-class product portfolio and deep technology expertise that enables us to offer more tightly integrated solutions and exceptional overall value for our customers.”
“With nearly 80 years of combined business leadership in photonics and compound semiconductors, it makes sense for Finisar to join the II-VI family to continue to deliver the best products and solutions possible,” said Todd Swanson, Finisar’s Chief Operating Officer and co-CEO. “Thanks to the talents of numerous individuals across this new global powerhouse, II-VI and Finisar are ready to merge into one highly efficient and seamless company with a common culture, vision and mission.”
II-VI is not providing updated guidance for its first quarter at this time. In the quarter end earnings call in early November, the company says it will provide more details to Finisar’s contributions to the first quarter.
II-VI will continue to leverage a Board of Directors comprised of seasoned executives and thought leaders from highly diverse industries.
II-VI will be organised into two segments called Photonic Solutions and Compound Semiconductors. These segments will be led by:
II-VI says the Compound Semiconductors Segment is expected to be a market leader in differentiated materials and devices such as those based on gallium arsenide, indium phosphide, gallium nitride and silicon carbide, by independently driving investments that advance its technology roadmaps.
The Photonic Solutions Segment leverages II-VI’s compound semiconductor technology platforms to deliver components and subsystems that are differentiated based on deep knowledge of end user applications for our key end markets.
For more information, visit www.ii-vi.com