ADC to Acquire Altitun, Ibsen
For the Altitun purchase, ADC will issue approximately 15,227,000 shares of its common stock to Altitun's shareholders and optionholders; based on the May 4 closing price of $57.25, the proposed acquisition is valued at approximately $872 million.
Subject to the usual approvals, the transaction should be completed during the next few weeks and will be accounted for as a pooling of interests. After closing the transaction, ADC expects to take a one-time charge for various acquisition-related expenses the amount of which has not been determined. Excluding the one-time charge, ADC expects the acquisition to be approximately $0.08 dilutive to earnings per share in both fiscal years 2000 and 2001, then accretive thereafter.
The proposed acquisition is the largest optics acquisition to date for ADC and marks the fifth optics acquisition by ADC in the last six years. Other acquisitions include AOFR (1995), a producer of fiber-optic couplers and components; Princeton Optics (1998), a maker of passive fiber-optic components; Spectracom (see ADC Telecommunications Acquires Spectracom, Developer of High-Powered 980 nm Pump Lasers), a developer and supplier of 980 nm pump lasers.
The Ibsen Micro Structures acquisition is valued at approximately $80 million. ADC expects to take a one-time charge for purchased research and development expense, the amount of which has not been determined. ADC expects to close this cash transaction by May 31, 2000, subject to customary closing conditions.
Ibsen produces fiber Bragg gratings for a wide range of applications, including filters for DWDM modules, gain flattening filters for fiber amplifiers and stabilizers for pump laser diodes. Ibsen has manufactured the largest commercially available phase mask with a grating size of 4 in. x 4 in.
Edited by Kristin Lewotsky, Photonics Online