VM., Don't sell them for awhile..
Shomiti Systems Inc. Announces Agreement to be Acquired by Finisar Corporation
SAN JOSE, Calif., Nov. 22 /PRNewswire/ -- Shomiti Systems Inc. the technology leader in Network QoS announced today that it has entered into a definitive agreement to be acquired by Finisar Corporation (Nasdaq: FNSR - news) a leading provider of gigabit fiber optic solutions for high-speed data networks. Under the terms of the agreement, Shomiti Systems will merge with a wholly-owned subsidiary of Finisar, and Shomiti stockholders will be entitled to receive up to approximately 4.3 million shares of Finisar Common Stock including shares issuable upon exercise of options assumed in the merger. The transaction will be accounted for as a purchase and is intended to qualify as a tax-free reorganization. The closing price of Finisar's Common Stock on November 20, 2000 was $22.13 per share, giving the transaction an approximate value of $95 million. The transaction is expected to close during the first calendar quarter of 2001 and is subject to approval by Shomiti's stockholders, the notification requirements of the Hart-Scott-Rodino Antitrust Act and other customary conditions.
Following the merger, Shomiti Systems will operate as a subsidiary of Finisar at its current facility in San Jose, California. Bill Shaw, Shomiti's President and CEO, will continue to serve as President and CEO of the Shomiti subsidiary.
``Finisar is the perfect company for us to team with to continue to develop innovative solutions for monitoring, measuring, analyzing and troubleshooting networks,'' said Bill Shaw, Shomiti's President and CEO.
``With their strong reputation in Fibre Channel test instruments, their growing presence in Gigabit Ethernet and our combined strengths in ASIC design and software development, our combined company will span all of the technologies that underlay LAN and storage area network SAN applications including SCSI storage over IP, Fibre Channel or Infiniband and IP and VoIP analysis on Ethernet or Infiniband,'' added Shaw.
``We have always felt that our strength in designing optical subsystems for Fibre Channel applications was amplified by the ability to design instruments which are able to monitor, measure and troubleshoot these optical devices in a storage area network (SAN),'' said Jerry Rawls, Finisar's President and CEO. ``With the addition of Shomiti, we have created a similar capability for Ethernet and IP networking applications,'' added Rawls.
About Shomiti
Shomiti Systems, Inc., headquartered in San Jose, California, is the technology leader in Network QoS (Quality of Service). Based on award winning silicon accelerated and software technologies, Shomiti's fully distributed, full line rate performance analysis products for 10/100/1Gb and VoIP deliver unrivaled scalability, performance, accuracy and value to customers worldwide. To meet the needs of its customers, Shomiti has a worldwide network of OEMs, distributors and resellers. For more information, Shomiti Systems can be reached at (408) 437-3940 or on the Internet at www.shomiti.com . |
