Optical component and subsystem vendors Oclaro, Inc. (NASDAQ: OCLR) and Opnext, Inc. (NASDAQ: OPXT) have closed their planned merger, creating the second largest supplier of optical communications components, modules, and subsystems, behind Finisar. The deal, which hit a temporary snag when Oclaro had to work overtime to receive shareholder approval to issue new stock to foot the bill, closed this past Monday, July 23, the companies say.
The two companies announced plans for the merger this past March (see “Oclaro, Opnext to merge”).Opnext shareholders received a fixed ratio of 0.42 shares of Oclaro common stock for every share of Opnext common stock. As a result, Oclaro shareholders now own 58% of the merged company, which will continue to operate under the Oclaro name (albeit with a shiny new logo).
Oclaro chief Alain Couder was named chairman and CEO of the combined company, with Opnext Chairman and CEO Harry Bosco taking a seat on the board of directors. The board also includes Joel A. Smith III as lead independent director and Edward Collins, Kendall Cowan, Greg Dougherty, Lori Holland, Dr. David Lee, Marissa Smith, and Bill Smith as independent directors.
The executive team reporting to Couder includes:
Jim Haynes, President, Global Business
Yves LeMaitre, Chief Commercial Officer
Terry Unter, Chief Operating Officer
Kei Oki, President, Oclaro Japan, Inc.
Tadayuki Kanno, Chief Operating Officer, Oclaro Japan, Inc.; GM, Modules and Devices Business Unit
Jerry Turin; Chief Financial Officer
Kate Rundle, Executive Vice President, General Counsel and Corporate Secretary
Kathy Zwickert, Executive Vice President, Human Resources and Communications
Bob Quinn, Chief Information Officer.
Oki and Kanno are the only members of the team from Opnext.
The combined company currently has approximately 3200 employees worldwide and $833 million in combined revenues for the fiscal year ended July 2, 2011.
"The new Oclaro boasts one of the broadest and vertically integrated product lines in the industry. Our vision is that the power and speed of light will change the way we live and work," said Couder via a press release that announced the closing of the deal. "By transmitting data over fiber at increasing speeds, our customers have made possible new and fast growing applications such as social networking, video streaming, and cloud computing. The ability to control the power of lasers as a heat and energy source is transforming healthcare, material processing, and consumer electronics. Through this merger, we have assembled the optical technologies, products and expertise at the heart of this new world of innovation."