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Mergers and Acquistions News

Categories: Telecoms

January 30th 2009, 11:51AM

Optical products firm Bookham and communications solutions company Avanex are to merge in an all-stock transaction.

When complete, Avanex shareholders will own nearly 47 per cent of the combined firm and the transaction is expected to generate $7 million (£4.89 million) of quarterly cost savings by the end of the fourth period following the merger.

The key strengths of the merged firm include best-in-class telecom chips, further research and development resources and maximised flexibility in manufacturing capacity.

Alain Couder, president and chief executive officer of Bookham, explains: "The combination of Bookham and Avanex creates synergies that we expect will significantly improve financial performance faster than either of the two companies could accomplish on a stand-alone basis."

Mr Couder will lead the merged company, with the board consisting of him, three directors from Bookham and three from Avanex.

Headquartered in California, Avanex provides intelligent phototonic solutions to meet the needs of fibre optic communication networks.

Bookham was founded in 1988 and offers optical solutions for markets such as telecommunications, aerospace and defence.ADNFCR-1833-ID-19000517-ADNFCR

 

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