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Corning to Buy Alliance Fiber Optic Products for $305m

by wireworld on 04/16/2016 - 05:07 pm

Tag: Acquisitions

Corning is to acquire optical communications device developer Alliance Fiber Optic Products. Corning is making an all-cash tender offer to acquire AFOP’s outstanding common shares at a price of $18.50 per share, representing a transaction value of around $305 million.

AFOP manufactures passive optical components, such as are used by cloud data-center operators and datacom and telecom OEMs. AFOP components are already used in several of Corning’s existing connectivity solutions. Founded in 1995 and headquartered in Sunnyvale, California, AFOP has manufacturing and product development capabilities in the US, Taiwan and China.

Corning plans to integrate AFOP into its Optical Communications business segment. The company is expecting the acquisition to expand its market access to cloud data-center operators and OEMs, broaden its presence in Asia, and provide product and cost synergies. Corning expects the acquisition to be accretive to its earnings per share during the first year.