Oclaro Capitalizes on Optical Components Opportunity

Oclaro has made a significant move in the optical components market by acquiring Opnext, a leading provider of high-speed optical components. This strategic acquisition has expanded Oclaro's product portfolio and enabled it to capitalize on the growing demand for optical components.

The acquisition of Opnext has given Oclaro access to a broader range of products, including high-speed transceivers and other optical components. This has enabled Oclaro to offer its customers a more comprehensive solution for their optical networking needs.

Oclaro's expertise in optical components has been further enhanced by the acquisition, allowing it to offer more advanced and complex solutions to its customers. This has positioned Oclaro as a leader in the optical components market.

With its expanded product portfolio and expertise, Oclaro is well-positioned to continue growing and capitalizing on the opportunities in the optical components market.

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The acquisition of Oclaro by Lumentum was a significant deal, with a price tag of $1.8 billion. Lumentum received clearance from Chinese antitrust authorities, the last major hurdle to completion.

Oclaro stockholders will receive $5.60 in cash and 0.0636 of a share of Lumentum common stock for each share of Oclaro common stock they exchange. This was the agreed-upon deal for the acquisition.

Lumentum came up with the funds for the buy via cash from the combined company balance sheets and $500 million from a new term loan. The company expects to derive an estimated $60 million in synergies in the next 12-24 months.

The acquisition significantly expands Lumentum's component and optical transceiver portfolio and helps consolidate the component and subsystems space.

Shares of Oclaro Inc. skyrocketed 27.5% on Monday after the optical component specialist agreed to be acquired by photonics products leader Lumentum Holdings.

Oclaro investors will receive $5.60 per share in cash and 0.0636 of a share of Lumentum common stock for each share of Oclaro they own.

The deal values Oclaro at roughly $9.99 per share, or $1.8 billion, which is a roughly 27% premium to Oclaro's Friday closing price of $68.98 on March 9, 2018.

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Oclaro's innovative solutions have been at the forefront of fast optical networks and high-speed interconnects for over three decades.

Leveraging this expertise, Oclaro has announced the production shipment of the industry's first fully-tunable SFP+ industrial temperature range (TSFP+ I-temp) transceiver.

This transceiver is designed for cable companies deploying the latest DOCSIS 3.1 standard, which enables fiber installation deeper into the HFC network.

Oclaro's efforts have led to significant results, including securing two award wins in highly coveted industry awards: the Lightreading Innovation Awards and Photonic Integrated Circuit (PIC) Award.

A notable achievement was securing 117 unique articles in 18 industry publications between April 2017 and April 2018.

Oclaro's successful campaigns have also resulted in contributed articles in major publications, with one article remaining on the publication's home page for the entire year.

Oclaro had over three decades of experience in innovation, which laid the groundwork for their solutions to be at the heart of fast optical networks and high-speed interconnects.

Their technology enabled the next wave of streaming video, cloud computing, voice over IP, and other high-speed bandwidth-intensive applications.

Oclaro's solutions were crucial for cable companies deploying the latest DOCSIS 3.1 standard, which pushed fiber installation much deeper into the HFC network to reach next-generation Remote Phy nodes.

This standard required a transceiver that could operate in a wide temperature range, which is exactly what Oclaro's TSFP+ I-temp transceiver provided.

Oclaro's innovation in laser technology, photonic integration, and transceiver/subsystem design made them a leading supplier of optical components.

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We secured some amazing results from our efforts. We placed contributed articles in the two major publications being distributed at Oclaro's top two tradeshows, one of which garnered so much interest that it remained on the publication's home page for the entire year.

We also won two award wins for Oclaro in highly coveted industry awards, showcasing Oclaro's product innovation: the Lightreading Innovation Awards and Photonic Integrated Circuit (PIC) Award.

We published a total of 117 unique articles in 18 industry publications between April 2017 and April 2018.

Here are the details of our media outreach efforts: