SAN JOSE, Calif. (AP) -- Oclaro Inc. is acquiring Opnext Inc. in an all-stock deal, the optical communications companies announced Monday.
The companies said the deal will create a new leader in the fast-growing optical components and modules market heavily used in Internet and other communications. They also work together to create laser diodes used for a variety of purposes.
Under the deal, Opnext shareholders will receive 0.42 shares of Oclaro common stock for every share of Opnext stock they own.
"This merger clearly will be a unique and transformational opportunity for both Oclaro and Opnext," Alain Couder, chairman and CEO of Oclaro, said in a statement. "Our respective customers want to work with fewer, more strategic suppliers who can deliver the breadth of technologies they need."
Couder will serve as chairman and CEO of the combined company. Upon closing, Harry Bosco, Opnext's CEO, will join the combined company's board of directors.
Shareholders of both parties must approve the deal, which is expected to close within three to six months
The companies said they expect to find cost savings of $35 million to $45 million within a year and a half of closing the deal. They also anticipate restructuring and system integration costs to total $20 million to $30 million.
Oclaro shares rose 13 cents to close at $4.66, but fell 5 cents in after-hours trading. Shares of Opnext, based in Fremont, Calif., rose 4 cents to close at $1.13 and rose 67 cents in after-hours trading.