Acquisition Adds Key Amplifier Technologies to and Broadens Telecom Product Lines
SUNNYVALE, CA -- (Marketwire) -- 07/03/12 -- Finisar Corporation (NASDAQ: FNSR) announced today that it has entered into an agreement to acquire all of the outstanding equity interests in RED-C Optical Networks, Inc., a Delaware corporation, with subsidiary operations in Tel Aviv, Israel. The acquisition will broaden Finisar's product lines primarily for telecom applications by adding key amplification technologies, including Erbium Doped Fiber Amplification (EDFA), Raman amplification and dynamic Hybrid amplification. These technologies are considered critical for ROADM line cards and are increasingly important in cost-effectively extending the reach of transceivers and transponders especially for 100 Gb/s and 40 Gb/s coherent transmission, ultra-long repeaterless links, and low latency networks.
The acquisition will be effected by the merger of RED-C with a wholly owned subsidiary of Finisar. In connection with the acquisition, Finisar will pay in cash approximately $23.7 million in initial consideration for all of RED-C's outstanding equity. As of March 31, 2012, RED-C had $3.2 million of cash and no debt. Finisar will also pay to stockholders and certain RED-C employees up to an additional aggregate of $20 million payable in cash or in shares of Finisar common stock at Finisar's option, subject to the achievement of financial performance targets related to RED-C products and technologies during calendar 2013 and continued employment with Finisar.
Founded in 2000, RED-C has over 140 subsidiary employees, all of whom are located in Israel. Following the acquisition, the RED-C business will operate as a subsidiary of Finisar, with principal operations continuing at its current facility in Israel. Finisar expects the acquisition of RED-C to be slightly positive to non-GAAP earnings per share in its fiscal year ending April 30, 2013. The acquisition is expected to be completed prior to July 31, 2012, subject to certain closing conditions.
About RED-C
RED-C Optical Networks (www.red-c.com) is a leading provider of state of the art EDFAs, Raman and Hybrid amplifiers, and optical monitoring devices for all network segments (long haul, regional, metro and access) and for all network applications (telecom, cable and enterprise). In addition to a broad variety of EDFA and Raman and Hybrid modules, RED-C offers innovative and comprehensive solutions for some of the industry's most difficult technological challenges today, such as ultra long repeaterless links and100 Gb/s coherent networks.
About Finisar Finisar Corporation (NASDAQ: FNSR) is a global technology leader of fiber optic subsystems and components that enable high-speed voice, video and data communications for networking, storage, wireless, and cable TV applications. For more than 20 years, Finisar has provided critical optics technologies to system manufacturers to meet the increasing demands for network bandwidth and storage. Finisar is headquartered in Sunnyvale, California, USA with R&D, manufacturing sites, and sales offices worldwide. For additional information, visit www.finisar.com. Stay up to date with Finisar by reading the Lightspeed blog and following us on Twitter and Facebook.
Source: Finisar
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