Reuters: Mergers News: UPDATE 1-Oclaro to buy Opnext in $177 mln stock deal

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Oclaro to buy Opnext in $177 mln stock deal Mar 26th 2012, 21:27 Mon Mar 26, 2012 5:27pm EDT * Opnext shareholders to get 0.42 Oclaro shares for every Opnext share * Offer reflects premium of 74 pct March 26 (Reuters) - Optical components maker Oclaro Inc will buy smaller rival Opnext Inc in a stock deal valued at about $177 million, to tap the urgent need for network upgrades driven by a spurt in Internet traffic and the rapid adoption of mobile devices. Opnext shareholders will receive 0.42 shares of Oclaro stock for every Opnext share and will own about 42 percent of the combined entity. The merged company is expected to report an operating profit, excluding items, in the first full quarter after the close of the merger. "The merger will create a new industry leader in the fast-growing optical components and modules market, forecast to reach $9.2 billion in 2015," the two companies said in a statement. Both Opnext and Oclaro compete with firms like Finisar Corp and JDS Uniphase Corp. Oclaro's offer reflects a premium of nearly 74 percent to Opnext's close on Monday. The combined company, which will be led by Oclaro Chief Executive Alain Couder, expects restructuring and system integration costs between $20 million and $30 million. The transaction is expected to close within three to six months. Shares of Opnext were up 57 percent at $1.77 in trading after the bell. They closed at $1.13. Shares of Oclaro were up 2 percent at $4.76. Link this Share this Digg this Email Reprints

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