II-VI completes Finisar acquisition

After obtaining anti-trust clearance from China’s State Administration for Market Regulation (SAMR) on 20 September, engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has completed its acquisition (announced on 9 November 2018) of fiber-optic communications component and subsystem maker Finisar Corp of Sunnyvale, CA, USA.

Finisar shareholders will receive on average $15.60 in cash and 0.2218 shares of II-VI common stock per share of Finisar stock, depending on each shareholder’s election.

The financing for the transaction was $1.9bn of cash raised in a combination of Term Loans A and B with a combined interest rate of L+251 and $1.1bn of the II-VI’s stock. Finisar shareholders will own about 32% of the combined firm. II-VI expects to achieve $150m in run-rate synergies over the next three years.

“Our company is taking a giant leap forward in our scale to serve a significantly increasing addressable market,” says II-VI’s CEO Dr Vincent D. Mattera Jr. “The powerful combination of II-VI and Finisar makes us the global leader in optical communications and continues our leadership in our other key end-markets, with a world-class product portfolio and deep technology expertise that enables us to offer more tightly integrated solutions and exceptional overall value,” he reckons.

“With nearly 80 years of combined business leadership in photonics and compound semiconductors, it makes sense for Finisar to join the II-VI family to continue to deliver the best products and solutions possible,” comments Finisar’s chief operating officer & co-CEO Todd Swanson. “II-VI and Finisar are ready to merge into one highly efficient and seamless company with a common culture, vision and mission.”

Led by a proven leadership team leveraging the strengths of the combined company, II-VI’s executive officers are: Dr Vincent D. Mattera Jr (chief executive officer), Walter R. Bashaw II (president), Mary Jane Raymond (chief financial officer), Dr Giovanni Barbarossa (chief strategy officer, II-VI Inc and president, Compound Semiconductors), Jo Anne Schwendinger (chief legal & compliance officer, corporate secretary) and Dr Christopher Koeppen (chief technical officer). II-VI will continue to leverage a board of directors consisting of executives from highly diverse industries.

II-VI will be organized into two segments:

Compound Semiconductors, led by its president Dr Giovanni Barbarossa (II-VI’s chief strategy officer) and
Photonic Solutions, led by its president Sunny Sun.

The Compound Semiconductors segment is expected to be a market leader in differentiated materials and devices such as those based on gallium arsenide, indium phosphide, gallium nitride and silicon carbide, by independently driving investments that advance its technology roadmaps.

The Photonic Solutions segment leverages II-VI’s compound semiconductor technology platforms to deliver components and subsystems that are differentiated based on knowledge of end-user applications for key end-markets.

II-VI now has a global workforce of over 25,000 in 70 locations worldwide.

See related items:

II-VI obtains all governmental regulatory approvals to complete Finisar acquisition

II-VI and Finisar announce results of election on form of merger

II-VI’s acquisition of Finisar approved by both firms’ shareholders

II-VI to acquire Finisar for $3.2bn

Tags: Optical communications II-VI Inc Finisar

Visit: www.finisar.com

Visit: www.ii-vi.com