Fiber-optic equipment supplier JDS Uniphase Corp. (Nasdaq: JDSU) inked a deal Tuesday to buy closely held Cronos Integrated Microsystems Inc. for $750 million in stock.
Cronos, based in Research Triangle Park, N.C., develops MEMS (micro-electro-mechanical systems) devices, which are used in building high-capacity optical communication switches.
JDS Uniphase Corp. (Nasdaq: JDSU) shares closed at 111 5/8, down 8-15/16, Monday, after news that United States anti trust officials have asked it and E-Tek Dynamics Inc. (Nasdaq: ETEK) for more information on their proposed stock swap, which was valued at about $18 billion. Canadian-based JDS had been on a run since it received bullish coverage from analysts in February.
JDS said it expects to close the Cronos deal this month.
Cronos shareholders must approve the deal but JDS Uniphase said in a statement stockholders representing a majority of outstanding Cronos voting stock have agreed to vote their shares in favour of the deal.
No regulatory reviews are required for the transaction, the company said.
The company said this aqcuisition will help it move towards all optical switching, "one of the next great hurdles for the fibre optic industry," according to CEO Kevin Kalkhoven.
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