News

10 July 2008

 

Opnext to acquire StrataLight

Optical module and component manufacturer Opnext Inc of Eatontown, NJ, USA has agreed to acquire privately held StrataLight Communications, Inc of Los Gatos, CA for about 26.55m common shares and $30m in cash (about $172m in total, based on Opnext’s closing share price of $5.35 on 8 July). The agreement has been approved by the boards of directors of both firms. Upon completion, StrataLight’s shareholders will own about 29% of the combined company.

With more than 200 staff, StrataLight designs, develops and manufactures 40Gb/s line-side optical subsystems and dispersion compensation modules, having shipped more than 2500 units. The subsystems, together with the optical systems of the firm’s customers, are widely deployed in several of the world’s largest tier-one service provider networks.

“Through this acquisition, Opnext will provide a complete 40G solution, which we believe will make us the market leader in 40G,” reckons president and CEO Harry Bosco. “By incorporating StrataLight’s leading 40G line-side products into our portfolio, we will be able to address both the line- and client-sides, significantly expanding our addressable market,” he says. “The combined expertise and technologies of Opnext’s client-side and StrataLight’s line-side products will position Opnext to address current and future 40G applications as well as the emerging 100G applications,” he concludes.

“With its industry-leading technology and solid customer base, StrataLight is well positioned as the leader in commercial deployment of 40G optical transmission subsystems,” claims StrataLight’s president and CEO Shri Dodani. “Together with Opnext, we will be positioned to lead in high-growth and strategic segments of the market, leveraging Opnext’s strength in module development, complementary product portfolio and proven track record.”

The completion of the proposed merger is subject to the approval of the stockholders of both firms. Under separate agreements, stockholders of Opnext and StrataLight holding a sufficient number of shares to approve the transaction have agreed to vote in favor of the merger, which is expected to close in fourth-quarter 2008.

See related item:

Opnext revenues rebound from December-quarter dip

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Visit: www.opnext.com

Visit: www.StrataLight.com