) recently announced that the company has rejected an unsolicited
offer to be acquired for $1.40 per share on May 23, 2012. The
company declined the offer as the merger offer with
) was much superior to this offer.
In March 2012, Oclaro announced that it entered into an
agreement to acquire its peer Opnext Inc. for approximately
Under the terms of agreement, Opnext shareholders will receive a
fixed ratio of 0.42 shares of Oclaro common stock for every share
of Opnext common stock they own.
Meanwhile, Opnext also stated that significant progress has been
made on the pending merger with Oclaro and it is expected to be
completed by the third quarter of 2012.
The combined company will attain its much needed scale of
economies to supply a wide range of products to telecom service
providers. The merged entity can significantly reduce their costs
of operations by shifting production facilities to the low-cost
Asia Pacific region. Oclaro has already started moving its test and
assembly facilities to Malaysia and Thailand.
The merged entity is expected to achieve annualized cost
synergies of $35 million to $45 million within 18 months of the
close of the transaction.
Chairman and CEO of Oclaro, Mr Alain Couder, will serve as
chairman and CEO of the combined company. Upon closing, Harry
Bosco, Chairman and CEO of Opnext will join the combined company's
board of directors.
In tandem with other industries, the optical component industry
is currently going through a downtrend. Major telecom carriers are
making inventory correction and this scenario is expected to
continue till mid 2012.
OCLARO INC (OCLR): Free Stock Analysis Report
OPNEXT INC (OPXT): Free Stock Analysis Report
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