Opnext agreed to acquire privately held StrataLight Communications, a supplier of 40 Gbps line-side optical subsystems and advanced dispersion compensation modules for the communications industry. StrataLight Communications has shipped more than 2,500 units to its customers so far. The company is headquartered in Los Gatos, CA and has more than 200 employees.
Under the terms of the agreement, Opnext will acquire StrataLight for a total consideration of approximately 26.55 million common shares and $30 million in cash. Based on Opnext’s closing share price of $5.35 on July 8, 2008, this represents a value of approximately $172 million. Upon completion of the acquisition, StrataLight Communications’ shareholders will own approximately 29 percent of the combined company.
“Through this acquisition, Opnext will provide a complete 40G solution, which we believe will make us the market leader in 40G. Opnext is known for one of the most comprehensive and best performing product portfolios in the marketplace and now, by incorporating StrataLight’s leading 40G line-side products into our portfolio, we will be able to address both the line- and client-sides, significantly expanding our addressable market,” said Harry Bosco, President and CEO of Opnext.http://www.opnext.comhttp://www.stratalight.com
