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II-VI to Acquire Optical Communications Provider Finisar in Deal Valued at USD 3.2bn.

M2 EQUITYBITES-November 15, 2018-II-VI to Acquire Optical Communications Provider Finisar in Deal Valued at USD 3.2bn

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15 November 2018 - Pennsylvania, US-based II-VI Inc. (NASDAQ: IIVI), a provider of engineered materials and optoelectronic components has agreed to acquire California, US-based optical communications provider Finisar Corp. (NASDAQ: FNSR) in a cash and stock transaction with an equity value of approximately USD 3.2bn.

The transaction values Finisar at USD 26 per share, or approximately USD 3.2bn in equity value and represents a premium of 37.7% to Finisar's closing price on November 8, 2018. Finisar shareholders would own approximately 31% of the combined company.

II-VI intends to fund the cash consideration with a combination of cash on hand from the combined companies' balance sheets and USD 2bn in funded debt financing. The transaction is expected to close in the middle of calendar year 2019.

The combination of II-VI and Finisar would unite two innovative, industry leaders with complementary capabilities and cultures to form a formidable industry leading photonics and compound semiconductor company capable of serving the set of fast growing markets of communications, consumer electronics, military, industrial processing lasers, automotive semiconductor equipment and life sciences.

Together, II-VI and Finisar will employ over 24,000 associates in 70 locations worldwide upon closing of the transaction.

II-VI Inc. is a vertically integrated manufacturing company that develops innovative products for diversified applications in the industrial, optical communications, military, life sciences, semiconductor equipment, and consumer markets.

Finisar Corp. (NASDAQ: FNSR) provides components and subsystems to networking equipment manufacturers, data centre operators, telecom service providers, consumer electronics and automotive companies.

BofA Merrill Lynch served as the exclusive financial advisor to II-VI, and K and L Gates LLP and Sherrard, German and Kelly, P.C. served as legal advisors to II-VI. Barclays served as exclusive financial advisor to Finisar and O'Melveny and Myers LLP served as legal advisor to Finisar.

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Publication:M2 EquityBites (EQB)
Date:Nov 15, 2018
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