COLORADO SPRINGS, Colo. -- Finisar Corp., the Sunnyvale, Calif., specialist in photonic components and subsystems, has emerged as the successful bidder for Infineon Technologies AG's fiber-optics business.
Infineon has been seeking a buyer for its laser and optical subassembly business since the beginning of the year.
Finisar offered 135 million shares of its common stock for the Infineon business unit, carrying a value of $263 million based on trading prices at the close of business on Wednesday (April 28). Following the transfer of the unit, Infineon will hold a 38-percent equity interest in Finisar.
Approximately 1,200 Infineon employees will join Finisar, and the latter company will pick up R&D, manufacturing and marketing operations from Infineon.
German operations include a primary manufacturing site in Berlin, along with operations in Munich and Regensburg. Other sites are located in Trutnov, Czech Republic, Longmont, Colo., and San Jose, Calif. Infineon also will transfer its stake in the ParoLink joint venture with UEC in Taiwan.
The Infineon fiber optics business unit had revenues of approximately $32 million in Infineon's second fiscal quarter. Finisar claims that when combined with the $55 to $60 million in revenues realized in its own fourth quarter, the two operations will create the largest "pure play" photonic component company in the world.
Finisar President Jerry Rawls said Infineon has a strong customer base in automotive optics and photonic components for passive optical and fiber-to-the-home sectors, markets where Finisar had no market presence.
Thomas Seifert, chief executive of Infineon's wireline communications business group, will join the Finisar board once the deal closes. Infineon will also become an IC supplier to Finisar.