Compoundsemi component maker II-VI of Pittsburgh, Pennsylvania USA, reported that it plans to acquire optical communications firm Finisar of Sunnyvale, California USA. The intended focus of the combined firm will be on the 3D-sensing and 5G markets.
The Boards of Directors of both II-VI and Finisar unanimously approved the merger agreement. The agreed-upon acquisition will be in the form of a cash and stock transaction valued at about $3.2 billion.
The companies expect that the merged firm to increase the scale and broaden the technology base compared to each company alone. Additionally, the companies say that the acquisition will bring together complementary product roadmaps of 3D-Sensing and 5G components and give the merged firm leadership positions in these fast-growing markets.
Merged Company to Serve 3D-Sensing and 5G Markets
The combined company would serve the markets for communications, consumer electronics, military, industrial processing lasers, automotive semiconductor equipment, and life sciences.
Upon closing of the transaction, the combined firm will employ over 24,000 associates in 70 locations worldwide.
Dr. Vincent D. Mattera, Jr., president and CEO, II-VI Incorporated commented, “In communications, materials processing, consumer electronics and automotive, we expect that the combination with Finisar will allow us to leverage our combined technology and intellectual property in InP, GaAs, SiC, GaN, SiP and diamond to achieve faster time to market, cost and scale.”
Mattera added, “Together, we believe that we will be better strategically positioned to play a strong leadership role in the emerging markets of 5G, 3D-sensing, cloud computing, electric and autonomous vehicles, and advanced microelectronics manufacturing.”