11/9/2018, 1:03 PM (Source: TeleTrader)
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Finisar to be acquired for $3.2B by II-VI

A powerhouse for photonics and compound semiconductors with $2.5 billion in revenue is in the making, as Finisar Corp. said on Friday it agreed to be bought at a premium of 37.7% from yesterday's closing by II-VI Inc. The maker of engineered materials and optoelectronic components based in Saxonburg, Pennsylvania, struck a deal of $3.2 billion in equity value. The announcement adds $15.60 per share would be cash and that the remainder is 0.2218 of its share per unit of common stock of the target entity, equivalent to $26 per share in total.

Run-rate cost synergies within 36 months of closing, expected by mid-June, are estimated at $150 million. Finisar's stockholders are planned to control 31% of the merged company, for which the statement adds would have more than 24,000 associates in 70 places on an international scale. The firm run from Sunnyvale, California, is active in optical communications, providing components and subsystems.

"Disruptive megatrends driven by innovative uses of lasers and other engineered materials present huge growth opportunities for both of our companies," said Vincent Mattera, president and chief executive of II-VI, and highlighted opportunities in areas including 5G, cloud computing, electric and autonomous vehicles. The technology developer said it would fund the takeover with $2 billion in debt.

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