Finisar Corp. (Nasdaq: FNSR) and Optium Corp. (Nasdaq: OPTM) will join forces to become the world’s largest supplier of optical components, modules and subsystems for the communications industry. The partnership is beneficial to both companies, creating new growth opportunities and a strengthened core customer relationship paired with complementary product portfolios.
“This combination leverages the unique strengths of both companies,” Eitan Gertel, chairman and CEO of Optium stated in the press release. “In combining with Finisar, we will unleash a powerful opportunity to create added shareholder value through breadth of product, enhanced customer support and manufacturing flexibility. With little product overlap, the proposed combination will complement both companies by providing more choice for customers, best-in-class technologies, focused technology innovation and cost efficiencies to meet our customers’ requirements. Customers and employees will be treated with the utmost care in combining our two companies.”
Mr. Gertel will become president and CEO of the emerging company, while Rawls will remain the CEO of Finisar’s board. The companies made the joint announcement today, stating that the partnership will utilize Finisar’s position in the storage and data networking industries and Optium’s position in the telecommunications and CATV industries.
“We are excited to combine with a successful company like Optium,” Jerry Rawls, chairman, president and CEO of Finisar Corporation. “Given the scale required to be competitive in meeting global customer needs, consolidation in the optical space is long overdue. In Optium, we have found the perfect partner. Optium has strong product technologies addressing some of the fastest growth markets in our industry. In addition, Optium’s manufacturing model will allow us to more readily capture the benefits of scale, while maintaining effective resources to serve customized technology requirements. More importantly, we believe both companies share a common culture that strives for innovation while exceeding customer expectations.”
Finisar today announced its total financials for the fourth quarter ended April 30, 2008, reporting revenues at $120 million. Optium posted revenues for the third quarter, ended May 2, 2008, at $45 million. Based on the financials for the 12 months through January 2008 reported by each company, the combined company had revenues of approximately $554 million.
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