22 August 2003 Fremont, CA -- As if the product lines from Corning and Alcatel weren't enough to swallow, Avanex Corp. has agreed to acquire most of Vitesse Semiconductor Corp.'s Optical Systems Division in San Jose. The deal includes an agreement to buy components from Vitesse over the next three years.
Avanex will acquire substantially all of the assets of Vitesse's Optical Systems Division in exchange for approximately 1.2 million shares of Avanex common stock. Based on the closing price of Avanex's stock on August 19, 2003, the transaction has a value of approximately $6 million. Avanex will also buy up to $2 million in products from Vitesse over the next three years. The completion of the transaction is subject to customary closing conditions.
Walter Alessandrini, chairman, president, and CEO of Avanex, said, "The acquisition of this business will enhance our already strong presence in transponders and expand our customer traction in subsystem products. Avanex will have a competitive cost structure by leveraging the world-class component capabilities we acquired this year from Alcatel and Corning. In addition, through our future relationship with Vitesse, a leader in high-speed communication integrated circuits, we believe that Avanex will have a significant advantage in developing intelligent solutions that integrate optics, electronics, firmware, and software."