JDS Uniphase to Acquire Optical Coating Laboratory

In the latest in a chain of acquisitions, optoelectronic components manufacturer JDS Uniphase (San Jose, CA) has signed an agreement to buy Santa Rosa, CA-based JDS Uniphase for $2.8 billion in stock. According to the terms of the purchase, OCLI shareholders will receive 0.928 shares of JDS Uniphase common stock for each share of OCLI common stock. Subject to approval, the deal is slated to close in the first quarter of 2000.

The acquisition is not unexpected. Since 1997, JDS Uniphase and OCLI have operated a contractual joint venture, under which OCLI contributed its expertise in optical thin film technology and products for certain WDM applications and JDS Uniphase contributed its expertise in the design, manufacture, and marketing.

As of this writing, OCLI stock was trading at $168, up nearly 41% from Wednesday's closing price of 119 ¼; JDS Uniphase stock remained near yesterday's closing price of 191 7/16.

Following completion of the transaction, OCLI will operate as a wholly-owned subsidiary of JDS Uniphase, under the leadership of current OCLI president and CEO Charles Abbe. Although both sides focused on the telecom implications of the acquisition, there are currently no plans for divestment of OCLI's non-telecom businesses such as Flex Products Inc. (Santa Rosa, CA). "Flex will continue to operate as part of the JDS Uniphase/OCLI family for the foreseeable future," said Abbe.

There also appear to be no plans for consolidating facilities. "In a classic sense, integration will not be taking place here," said Kalkoven.

The acquisition comes on the heels of the JDS Uniphase acquisition of Epitaxx (see JDS Uniphase Acquires Epitaxx) and Raman (see JDS Uniphase Acquires Ramar).