Tuesday, November 10, 2009

Ignis and Gemfire to Merge

Ignis and Gemfire, both suppliers of fiber optical components, announced a merger. Under the deal, Ignis will issue approximately 36 million shares to the current shareholders of Gemfire, corresponding to an ownership of 48% of the combined company. Furthermore, as part of the transaction, privately held Palo Alto Investors (PAI) and Gemfire's current lead shareholder, will inject US$15 million in the combined company at a subscription price per share of NOK 5.50.

Gemfire's "PhotonIC" planar technology platform enables wafer-scale processing for optical components, such as Athermal and standard AWGs, TODCs, VOAs, VMUXs, and Phase Modulators.

Ignis' current shareholders will retain an ownership of approx. 43% in the combined company post the merger and the capital injection of USD 15 million. The combined company will maintain its listing on the Oslo Stock Exchange.

"Ignis is experiencing substantial growth in the international markets for fiber optical components, particularly in Asia. I believe the complimentary product portfolios, the operational economies of scale and our mutual market penetration will give the combined company an even stronger position for further growth and expansion in the international telecommunication sector," said Thomas Ramm, CEO of Ignis, who will take the position as Chairman of the combined company.

Richard Tompane, President and CEO of Gemfire, who will become the CEO of the combined company.

See also