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1 September 2008


Finisar completes merger with Optium

Fiber-optic component and subsystem maker Finisar Corp of Sunnyvale, CA, USA has completed its merger with optical subsystem maker Optium Corp of Horsham, PA, USA (announced in May) following approval of the transaction on 28 August by the stockholders of both firms. Optium’s stock is no longer traded on the NASDAQ GMX, with stockholders receiving 6.262 shares of Finisar common stock for each Optium share.

“By combining with Optium, we have created new industry leadership, with unmatched breadth of products to meet the ever-increasing demand for solutions that expand, manage and optimize optical network bandwidth,” claims Finisar’s executive chairman Jerry Rawls. “The extensive product portfolio and unique manufacturing flexibility resulting from this merger generate a powerful platform for creating added value for our customers and shareholders.” The firms reckons that the merger creates the world's largest supplier of optical components, modules and subsystems for the communications industry, leveraging Finisar’s position in the storage and data networking industries and Optium’s leadership position in the telecoms and CATV industries.

Optium designs and manufactures optical subsystems supporting core to the edge applications for use in telecoms and cable TV network systems. Its optical transport solutions features fixed and wavelength-agile 10Gb/s and 40Gb/s transceivers and subsystems, 10Gb/s pluggable transceivers, cable TV trunking and distribution subsystems and Optium’s next-generation wavelength-selectable switch reconfigurable optical add/drop multiplexer (WSS ROADM) product line. The firm also has offices in Sydney, Australia (from the acquisition of WSS module maker Engana Pty Ltd in March 2006) and Nes Ziona, Israel (from the acquisition of 40Gb/s transceiver maker Kailight Photonics Inc in May 2007).

Finisar manufactures fiber-optic components and subsystems as well as network test and monitoring systems. Applications include high-speed data communications for networking and storage applications over Gigabit Ethernet local-area networks (LANs), Fiber Channel storage-area networks (SANs), and metropolitan-area networks (MANs) using Fiber Channel, IP, SAS, SATA and SONET/SDH protocols.

Finisar has also appointed Optium’s chairman and CEO Eitan Gertel as its CEO and a member of the board. Rawls will continue as executive chairman. Referring to Geitel, Rawls says that they are already working closely to ensure a smooth integration between the two firms.

“From a product, industry, customer and business model perspective, this combination is complementary in every way,” reckons Gertel. “Customers will have access to the broadest portfolio of optical communication solutions in the industry, supported by unparalleled technology and global manufacturing resources,” he claims.

In addition, the following members of the Optium board were appointed to Finisar’s board: Morgan Jones (a general partner of Battery Ventures LP); and Christopher Crespi (co-founder and president of investment firm Pacific Realm LLC and former managing director of Banc of America Securities LLC). “Each bring a wealth of experience that will be valuable as we chart the course for the combined company,” says Rawls.

See related items:

Finisar grows 25% year-on-year, driven by 10/40Gbps

Finisar and Optium agree to merge

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