caLogo

SAN JOSE -- Optical component and systems OEMs Oclaro and Opnext have agreed to merge in an all-stock transaction valued at about $175 million.

The transaction is is expected to close within three to six months, subject to shareholder approval and US regulatory approvals.

The merger is expected to mark a major transformation in the optical industry, creating the second-largest optical components and modules company.

It could also shake up the contract electronics manufacturing industry, which felt a tremor over a separate deal announced by Oclaro last week.

In that deal, Oclaro said it would transfer its final assembly and test operations in Shenzhen to EMS provider Venture Corp. Oclaro also will transfer production to Venture’s Malaysia facility over the next three years.

That decision already had repercussions for Oclaro's exclusive EMS provider, Fabrinet. Oclaro accounted for 17% of Fabrinet's sales in fiscal 2011.

Likewise, Optnext accounts for 10% of Fabrinet's sales.

Whether the combined company (the new name was not disclosed) will continue to lean heavily on Fabrinet or whether it will engage with other contract printed circuit board assemblers remains to be seen. The stakes are high: The optical components market is forecast to reach $9.2 billion in 2015, according to a Ovum forecast from late last year.

Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article
Don't have an account yet? Register Now!

Sign in to your account