Thursday, May 15, 2008

Finisar and Optium to Merge, Consolidation of Optical Component Suppliers

Finisar and Optium Corporation agreed to an all-stock merger, creating one of the largest suppliers of optical components, modules and subsystems for the communications industry. Finisar is a leading supplier of components in the storage and data networking industries and Optium holds a leadership position in the telecommunications and CATV industries.


Under the deal Optium stockholders will receive 6.262 Finisar shares for each Optium share they own. Optium options and warrants will represent a corresponding right to acquire a number of Finisar shares based on the exchange ratio. Finisar is expected to issue approximately 160 million common shares in the proposed combination. Upon completion of the combination, Finisar shareholders will own approximately 65% of the combined company and Optium shareholders will own approximately 35% of the combined company. Shares of the combined company will continue to trade on the NASDAQ Select Market under the symbol: FNSR. The combination is intended to qualify as a tax-free reorganization for Federal income tax purposes.


Based on the twelve months through January 2008 reported by each company, the combined company had revenues of approximately $554 million. Based on revenues expected to be reported for the most recent quarter, annualized revenues for the combined company would total approximately $660 million. The combined company will have approximately 5,000 employees world-wide.


Finisar is based in Sunnyvale, California and has approximately 4,500 employees.


Optium is headquartered in Horsham, PA and has offices in Sydney, Australia and Nes Ziona, Israel. Optium has approximately 400 employees.http://www.Finisar.comhttp://www.optium.com

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