California-based Finisar Corp is now merged with Optium Corporation, following an all-stock deal. The merger creates what the companies say is the world’s largest supplier of optical components, modules and subsystems for the communications industry.

 

Finisar and Optium have few overlapping products, and as such analysts believe the merger will yield expected dividends.

 

The merger comes at a time when customers are increasingly trying to limit the number of suppliers they work with.

 

Finisar made public of its merger with Optium in May, after the companies entered into a definitive agreement hoping to cater to wider areas of telecom industry.

 

Under the terms of the agreement announced earlier, Optium stockholders are to receive 6.262 Finisar shares for each Optium share they own. Upon completion of the combination, Finisar shareholders are to own approximately 65 per cent of the combined company leaving the remaining 35 per cent to Optium. Finisar’s latest press release talks little about these financial details.

 

The merger transaction was approved on Thursday by the stockholders of both companies.

 

“By combining with Optium, we have created new industry leadership, with unmatched breadth of products to meet the ever-increasing demand for solutions,” said Jerry Rawls, executive Chairman of Finisar, in a statement. “The extensive product portfolio and unique manufacturing flexibility resulting from this merger generate a powerful platform for creating added value for our customers and shareholders.”

 

As agreed earlier, Optium's Chairman Eitan Gertel will take charge as CEO of Finisar and a member of its board, while Jerry Rawls will continue in his role as executive Chairman of Finisar's board.

 

“We are already working closely to ensure a smooth integration between the two companies,” Rawls said. “I am also delighted to welcome Morgan and Chris to the Finisar board. They each bring a wealth of experience that will be valuable as we chart the future course for the combined company.”

 

“Our customers will have access to the broadest portfolio of optical communication solutions in the industry,” said Eitan Gertel, Finisar's newly appointed CEO, in a statement.

Finisar is a provider of fiber optic subsystems and network test systems that enable high-speed voice, video and data communications for networking, storage, wireless, and cable TV applications.