II-VI has agreed to acquire Finisar in a deal aimed at selling more iPhone sensors to Apple and makers of autonomous cars.
The laser and optical parts maker said it will pay shareholders of Finisar $26 per share in cash and stock, representing a premium of 37.7% to the closing price of Finisar stock on Thursday. Shareholders of Finisar would own about 31% of the combined company.
Dr. Vincent D. Mattera, Jr., President and CEO of II-VI Incorporated commented, “We have long admired Finisar and have a great deal of regard for its founders and its talented global team. Our companies both have a long history of focusing on innovation, breakthrough solutions and competitive follow-through by manufacturing high quality products for our customers, and we look forward to welcoming Finisar to the II-VI family and further strengthening our competitive position in the industry.”
The combined firm will be at a better position to grab a larger share of the high-speed 5G infrastructure and expand its consumer electronics. The deal, which is still subject to customary closing conditions, is expected to close in the middle of calendar 2019.
Michael Hurlston, Chief Executive Officer of Finisar offered these remarks, “The combination of our state-of-the-art technology platforms, deep customer relationships, great assets, and amazing talent will enhance our ability to hit market windows that won’t stay open for long. This combination will accelerate our collective growth and will take advantage of the technology, products and manufacturing expertise that Finisar has uniquely developed over the course of its 30-year history.”
Shares of Finisar gained 24.31% or $4.59 to $23.47 in premarket hours following the news. Meanwhile, those of II-VI were dipped nearly 7% to change hands at $43.65. The dip reflects arbitrage investing activity that frequently accompanies deals in which an acquirer funds its purchase with stock.
II-VI Inc Company Profile
II-VI, Inc. engages in the development, refinement, manufacturing, and marketing of engineered materials and opto-electronic components and products for precision in the field of industrial, optical communications, military, semiconductor, medical and life science applications.
It operates through the following segments: Laser Solutions, Photonics, and Performance Products. The company was founded Carl J. Johnson in 1971 and is headquartered in 1971 and is headquartered in Saxonburg, PA. – CNN Money
Finisar Corp. Company Profile
Finisar Corp. is an optical communications company, which engages in the provision of components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics and automotive companies.
Its products include optical transceivers, active optical cable, optical engines, communication components, sensing components, and optical instrumentation. The company was founded by Frank H. Levinson and Jerry S. Rawls in April 1987 and is headquartered in Sunnyvale, CA. – CNN Money