Lucent Technologies to Purchase SpecTran Corporation, A Leading Manufacturer Of
World-Class Optical Fiber and Fiber Optic Products
MURRAY HILL, N.J., July 15 /PRNewswire/ -- Lucent Technologies (NYSE: LU)
today announced it has signed an agreement to acquire SpecTran Corporation
(Nasdaq: SPTR), an industry leader in the design and manufacture of specialty
optical fibers and fiber optic products, for about $64 million or $9 a share,
plus the assumption of $35 million in SpecTran debt, in an all-cash tender
offer.
SpecTran, based in Sturbridge, Mass., employs approximately 500 people in
two divisions. The first, SpecTran Communication Fiber Technologies in
Sturbridge, manufactures high-performance optical fiber for premises data
communications and telecommunications applications. SpecTran Specialty Optics
Company, located in Avon, Conn., develops custom-engineered fiber solutions
and cable components for industrial automation, data communications,
military/aerospace and medical applications.
Lucent and SpecTran are building off an established relationship. Last
year, the two companies signed an agreement giving SpecTran rights to certain
Lucent fiber patents for use in the company's manufacturing operations. In
addition, Lucent has been one of SpecTran's major customers.
The transaction is expected to be completed by the end of the quarter
ending Sept. 30, 1999. The impact of the purchase on earnings is expected to
be immaterial.
"The communications revolution is fueling strong worldwide demand for
optical fiber," said Bill Spivey, president of the Network Products Group for
Lucent Technologies. "Our acquisition of SpecTran will support continued
growth in our business by providing us with new fiber products, additional
expertise and new market niches within the optical fiber industry."
"SpecTran and Lucent have a number of important synergies that should make
this match successful," said Charles B. Harrison, president and chief
executive officer of SpecTran. "Working with Lucent and the unmatched
technical capabilities of Bell Labs, we have the opportunity to deliver world-
class fiber solutions."
Harrison intends to stay with Lucent for a transition period to ensure a
successful integration of the businesses.
Under the terms of the definitive agreement, which has been approved by
SpecTran's board of directors, Lucent will begin a cash tender offer for all
outstanding shares of SpecTran common stock for $9 a share. The offer is
expected to commence on July 21. Any shares not purchased in the offer will
be acquired for the same price in cash, in a second-step merger. The offer
and merger are subject to the purchase of the majority of the outstanding
shares of SpecTran. Lazard Freres & Co. LLC has acted as investment banker to
SpecTran Corporation.
Lucent's Optical Fiber Business
Lucent Technologies is one of the world's leading manufacturers of fiber,
with 13 fiber and cable manufacturing operations and joint ventures around the
world. Earlier this year, Lucent announced a joint venture in Russia with
SviaStroy-1 to produce optical fiber cable. In addition, Lucent has a
$350 million expansion program underway at its manufacturing facility in
Atlanta, as well as expansion programs under way at other sites in Denmark and
China.
Lucent's extensive fiber product line is designed by the company's
research and development organization, Bell Laboratories, which holds more
than 1,600 patents in optical networking. Lucent's Bell Labs invented
nonzero-dispersion (NZDF) fiber with its award-winning TrueWave(R) fiber
offering. Lucent remains the industry leader in providing fiber for
high-capacity networks. To date, Lucent has produced more than 6 billion
meters of its TrueWave fiber -- enough fiber to wrap around the world 150
times.
About SpecTran Corporation
SpecTran Corporation is a leading manufacturer of high-performance
multimode and single-mode optical fiber for data communications,
telecommunications, CATV and industry applications worldwide. Founded in
1981, the company's application-specific optical fiber and cable products also
serve industrial, aerospace and medical markets. For additional information
about SpecTran, visit the company's web site at spectran.com.
About Lucent Technologies
Lucent Technologies designs, builds and delivers a wide range of public
and private networks, communications systems and software, data networking
systems, business telephone systems and microelectronics components. Bell
Labs is the research and development arm for the company. More information
about Lucent Technologies, headquartered in Murray Hill, N.J., is available on
its Web site at lucent.com.
SOURCE Lucent Technologies
-0- 07/15/99
/CONTACT: Bill Price, office - 908-582-4820, home - 973-515-5038, or
Roger Frizzell, office - 972-745-4831, home - 972-539-6653, both of Lucent
Technologies; or Michael Polyviou of Porter, LeVay & Rose, Inc., 212-564-4700,
for Spectran/
/Web site: lucent.com
(LU SPTR)
CO: Lucent Technologies; SpecTran Corporation
ST: Massachusetts, New Jersey
IN: CPR
SU: TNM
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