JDS Uniphase to Buy Acterna in $760M Deal
biz.yahoo.com
Monday May 23, 5:19 pm ET
JDS Uniphase to Acquire Acterna in $760 Million Stock and Cash Deal
SAN JOSE, Calif. (AP) -- JDS Uniphase Corp., a maker of equipment to build fiber optic networks, on Monday said it will acquire Acterna Corp. in a $760 million deal that will boost its presence in the equipment testing field.
The transaction calls for JDS Uniphase to pay $450 million in cash and $310 million in common stock to buy the privately-held company. JDS Uniphase expects the deal, which is subject to customary closing conditions and regulatory approvals, to close in the quarter ending Sept. 30.
The Germantown, Md.-based Acterna makes products that are used by communications service providers and telecom networking equipment makers to monitor their networks.
For JDS Uniphase, the acquisition increases its array of products being sold to communications companies. The industry addressed by Acterna represents a $2.6 billion market expected to see 5 to 10 percent compounded annual growth over the next five years, JDS said.
This deal is also expected to accelerate JDS Uniphase's path to profitability as the acquisition will be immediately financially beneficial. Based on preliminary results for fiscal year ended March 2005, Acterna's revenue exceeded $440 million.
Acterna, which employs approximately 1,770 people worldwide, will become JDS Uniphase's Communications T&M, or optical test and management, product group. The division will be led by Acterna President and Chief Executive John Peeler, who has been with the company for 25 years. |
