Oclaro and Opnext set for merger
Oclaro and Opnext are to merge in a deal valued at around $177 million.
Optical communications provider Oclaro and optical modules manufacturer Opnext are to merge.
The deal will see Opnext shareholders receive 0.42 shares of Oclaro stock for every Opnext share they hold and, according to Reuters, the deal is worth approximately $177 million (£110 million).
Shares in Oclaro jumped on the news, rising almost three per cent to $4.66 on the Nasdaq.
Both parties are likely to have taken advice from merger and acquisition consultants and Oclaro said in a statement that the deal will result in a new leader in the optical components and modules market.
The two firms have over 30 years of combined experience in optical technology having worked with innovators such as Hitachi, Nortel and Alcatel and chairman and chief executive of Oclaro Alain Couder said the merger represents "a unique and transformational opportunity" for both parties.
Opnext chairman and chief executive Harry Bosco added the combination will create a "unique opportunity" for customers, employees and shareholders.
Source: Oclaro press release, March 27th
Posted by Ron Maverick