Bookham Technology acquires Cierra Photonics Inc.
7 July 2003 Oxfordshire, UK Lightwave -- Bookham Technology plc has entered into an agreement to acquire substantially all of the business and assets of component manufacturer Cierra Photonics Inc.
7 July 2003 Oxfordshire, UK Lightwave -- Bookham Technology plc has entered into an agreement to acquire substantially all of the business and assets of Cierra Photonics Inc., a company based in Santa Rosa, CA, employing approximately 39 people.
Cierra Photonics designs and manufactures thin-film filters and other components for the fiber-optic telecommunications industry. The company's Advanced Energetic Deposition (AED) technology is a specialized process for wafer-scale deposition of extremely well-controlled films that results in thin-film components that have lower costs, high yields, and industry-leading optical performance, claim Bookham representatives.
Per the agreement, Bookham Technology will acquire substantially all of the assets and certain liabilities of Cierra Photonics. The consideration for the acquisition will comprise the issue to Cierra Photonics of 3,071,484 new ordinary shares in Bookham Technology. These shares will be issued on completion, which was expected to take place July 4, 2003, or shortly thereafter.
Based on the closing price of the ordinary shares of Bookham on July 3, 2003, the consideration for the acquisition is valued at approximately £ 2.25 million.
In addition and subject to the satisfactory fulfilment of specific sales milestones over the next two years, a potential further 4,200,000 ordinary shares in Bookham Technology could be issued to Cierra Photonics.
Application has been made to admit the new ordinary shares in Bookham Technology to the Official list of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities. Admission of the new shares is expected to take place following completion of the acquisition.
"We believe that our acquisition of the business and assets of Cierra Photonics opens up to us a large market area where we have not been present to date, and that it should help fuel our growth in this area," contends Giorgio Anania, Bookham's president and chief executive officer. "This acquisition, though small in scale, underscores our commitment to expand our position in the marketplace," he adds.