Finisar Corporation FNSR, and u2t Photonics AG announced today that they have entered into an
agreement under which Finisar will acquire 100% of the equity interests in
u2t Photonics AG, located in Berlin, Germany for approximately $20 million
in cash, subject to certain adjustments. Finisar will also assume net debt
of approximately $7 million. The transaction is expected to close during the
month of January, subject to the satisfaction of customary closing
conditions. With this transaction, Finisar will add u2t's Indium-Phosphide
(InP)-based 100G high speed receivers and photodetectors to its existing
portfolio of high speed optics technologies. In addition, this acquisition
will consolidate Finisar's previously announced partnership with u2t on
InP-based IQ Mach-Zehnder modulators for 100G coherent applications. These
receiver, photodiode and modulator technologies and products, when combined
with Finisar's narrow-line width tunable lasers, will provide a full suite
of optical components and enable Finisar to offer its customers vertically
integrated modules for the 100G coherent metro and long haul markets. In
calendar year 2013, u2t had total revenues of approximately $33 million.
"We are pleased with the acquisition by Finisar. During our collaboration to
acquire the assets of COGO Optronics GmbH and develop the InP modulator
technology from the Fraunhofer Heinrich-Hertz-Institute (HHI), we realized
that Finisar's technical strength, ability to cost effectively commercialize
technology and global access to customers and markets would combine
extremely well with our industry leading technology and design capabilities.
Furthermore, the acquisition provides a one-of-a-kind opportunity for our
employees and innovative technologies to make a greater impact on the
optical communication markets," said Andreas Umbach, CEO and Co-Founder of
ut2.
"Finisar is very excited about the near term applications for the u2t
technology and products for the 100G coherent telecom markets," stated John
Clark, Finisar's Executive Vice President for Technology and Global R&D. "We
are even more excited about the potential to use this technology to help
drive data rates higher than 100 Gb/s and form factors smaller than the CFP2
module and enabling new market applications in both telecom and datacom."
Safe Harbor under the Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended. All forward-looking
statements included in this press release are based upon information
available to Finisar as of the date hereof, and Finisar assumes no
obligation to update any such forward-looking statements. Forward-looking
statements involve risks and uncertainties which could cause actual results
to differ materially from those projected. Examples of such risks include
those associated with: satisfaction of the conditions to closing the
transaction; the uncertainty of the successful integration of acquired
business; the uncertainty of the timing and amount of expected cost savings
and synergies to be achieved in connection with the acquisition; the
uncertainty of customer demand for Finisar's products; the rapidly evolving
markets for Finisar's products and uncertainty regarding the development of
these markets; Finisar's historical dependence on sales to a limited number
of customers and fluctuations in the mix of products and customers in any
period; ongoing new product development and introduction of new and enhanced
products; the challenges of rapid growth followed by periods of contraction;
and intensive competition. Further information regarding these and other
risks relating to Finisar's business is set forth in Finisar's annual report
on Form 10-K (filed June 24, 2013) and quarterly SEC filings.
About Finisar
Finisar Corporation FNSR is a global technology leader for fiber
optic subsystems and components that enable high-speed voice, video and data
communications for telecommunications, networking, storage, wireless, and
cable TV applications. For 25 years, Finisar has provided critical optics
technologies to system manufacturers to meet the increasing demands for
network bandwidth. Finisar is headquartered in Sunnyvale, California, USA
with R&D, manufacturing sites, and sales offices worldwide. For additional
information, visit www.finisar.com.
About u2t Photonics AG
u2t Photonics AG, founded in 1998 and headquartered in Berlin/Germany, is
the leading supplier of ultra-high speed optical components up to 100 GHz.
Based on its unique and mature technology u2t develops, manufactures and
markets highly competitive products for high speed communication
applications and detectors with superior performance for test and
measurement equipment vendors. A platform approach based on building blocks
enables u2t to offer a comprehensive and fully TELCORDIA qualified portfolio
supporting the requirements from transponder vendors, line card and system
designers as well as test equipment vendors. u2t is ISO9001 certified and
offers high quality of service.
Finisar and the Finisar logo are registered trademarks of Finisar
Corporation.
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