Vitesse Semiconductor Corp., Camarillo, Calif., announced today that it has agreed to acquire Versatile Optical Networks, Inc. headquartered in San Jose.
Versatile designs and manufactures optical and opto-electronic modules to create integrated system and subsystems for data and communications networks.
Versatile uses an approach that relies on a multi-level, building-block architecture for integrating optical and OEO (optical-to-electrical-to-optical) solutions.
Initial products include optical switches, transponders and transponder arrays. Versatile has 72 employees, including over 55 engineers.
In connection with the acquisition, Vitesse will issue approximately 10 million shares of its common stock in exchange for all of the outstanding equity interests of Versatile. Vitesse's stock closed Monday at just over $24, making the deal worth approximately $240 million. The transaction is expected to be completed in the quarter ending September 30, 2001, subject to customary closing conditions.
The transaction, which will be accounted for as a purchase, is expected to be dilutive to Vitesse's earnings per share on a pro-forma basis by approximately 2 cents per share per quarter for the remainder of calendar 2001.
Vitesse president and chief executive officer, Lou Tomasetta said in a prepared statement, "The Versatile acquisition brings a great team with opto-mechanical design and manufacturing experience. Combined with Vitesse's strengths in analog and physical layer ICs and our emerging Indium Phosphide manufacturing capability, we will now be one of the best positioned communications component suppliers. We can now provide our customers a complete solution of communication components from the fiber to the backplane."