II-VI Incorporate’s $3.2 Billion Acquisition of Finisar

BofA Merrill Lynch served as the exclusive financial advisor to II-VI, and K&L Gates LLP and Sherrard, German and Kelly, P.C. served as legal advisors to II-VI. Barclays served as exclusive financial advisor to Finisar and O’Melveny & Myers LLP served as legal advisor to Finisar.

II-VI Incorporated (NASDAQ:IIVI), a global leader in engineered materials and optoelectronic components, and Finisar Corporation (NASDAQ: FNSR), a global technology leader in optical communications, today announced that they have entered into a definitive merger agreement under which II-VI will acquire Finisar in a cash and stock transaction with an equity value of approximately $3.2 billion.

Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, Finisar’s stockholders will receive, on a pro-rated basis, $15.60 per share in cash and 0.2218x shares of II-VI common stock, valued at $10.40 per share based on the closing price of II-VI’s common stock of $46.88 on November 8, 2018. The transaction values Finisar at $26.00 per share, or approximately $3.2 billion in equity value and represents a premium of 37.7% to Finisar’s closing price on November 8, 2018. Finisar shareholders would own approximately 31% of the combined company.

The combination of II-VI and Finisar would unite two innovative, industry leaders with complementary capabilities and cultures to form a formidable industry leading photonics and compound semiconductor company capable of serving the broad set of fast growing markets of communications, consumer electronics, military, industrial processing lasers, automotive semiconductor equipment and life sciences. Together, II-VI and Finisar will employ over 24,000 associates in 70 locations worldwide upon closing of the transaction.

The K&L Gates cross-border team that advised II-VI was led by Chicago partner Mark McMillan. Other key team members from K&L Gates include corporate partners Michelle Repp (Pittsburgh) and John Blair (Charlotte), capital markets partner Jeff Acre (Pittsburgh), banking and asset finance partner Vanessa Spiro (Pittsburgh), antitrust, competition & trade regulation partners Allen Bachman (Washington, D.C.) and Lauren Donahue (Chicago), as well as corporate associates Leah Baucom (Charlotte), Mary Scott Kennedy (Charlotte), and Tami Mack (Pittsburgh).

O’Melveny represented Finisar Corporation with a team including David Makarechian and Noah Kornblith, the M&A team also included Scott Widen, John Chong, Wenting Yu, Carolyn White and Amanda Bradley. In addition, Courtney Dyer, Courtney Byrd, Philip Monaghan, Christian Riis-Madsen, Philippe Nogues and Maude Vonderau are providing antitrust advice, Warren Fox and Jeff Walbridge provided advice on executive compensation matters, Brian Danella and Katie Tague provided IP advice, Eric Amdursky and Ashley Brown provided labor and employment advice, Eric Rothenberg, Bob Nicksin and John Rousakis provided environmental advice, Jennifer Taylor, Jeeho Lee and Sarah Levesque advised on financing and securities matters, along with Rob Plesnarski and Shelly Heyduk, Scott Pink advised on security and privacy matters, Robert Fisher and Billy Abbott provided tax advice, and Greta Lichtenbaum advised on certain regulatory matters.

Involved fees earner: Jeffrey Acre – K&L Gates; Allen Bachman – K&L Gates; Leah Baucom – K&L Gates; John Blair – K&L Gates; Tami Lanell Mack – K&L Gates; Michelle McCreery Repp – K&L Gates; Mark McMillan – K&L Gates; Lauren Norris Donahue – K&L Gates; Mary Scott Kennedy – K&L Gates; Vanessa Spiro – K&L Gates; Billy Abbott – O’Melveny & Myers LLP; Eric Amdursky – O’Melveny & Myers LLP; Amanda Bradley – O’Melveny & Myers LLP; Ashley Brown – O’Melveny & Myers LLP; Courtney Byrd – O’Melveny & Myers LLP; John Chong – O’Melveny & Myers LLP; Brian Danella – O’Melveny & Myers LLP; Courtney Dyer – O’Melveny & Myers LLP; Robert Fisher – O’Melveny & Myers LLP; Warren Fox – O’Melveny & Myers LLP; Shelly Heyduk – O’Melveny & Myers LLP; Noah Kornblith – O’Melveny & Myers LLP; Jeeho Lee – O’Melveny & Myers LLP; Sarah Levesque – O’Melveny & Myers LLP; Greta Lichtenbaum – O’Melveny & Myers LLP; David Makarechian – O’Melveny & Myers LLP; Philip Monaghan – O’Melveny & Myers LLP; Bob Nicksin – O’Melveny & Myers LLP; Philippe Nogues – O’Melveny & Myers LLP; Scott Pink – O’Melveny & Myers LLP; Robert Plesnarski – O’Melveny & Myers LLP; Christian Riis-Madsen – O’Melveny & Myers LLP; Eric Rothenberg – O’Melveny & Myers LLP; John Rousakis – O’Melveny & Myers LLP; Katie Tague – O’Melveny & Myers LLP; Jennifer Taylor – O’Melveny & Myers LLP; Maude Vonderau – O’Melveny & Myers LLP; Jeff Walbridge – O’Melveny & Myers LLP; Carolyn White – O’Melveny & Myers LLP; Scott Widen – O’Melveny & Myers LLP; Wenting Yu – O’Melveny & Myers LLP;

Law Firms: K&L Gates; O’Melveny & Myers LLP;

Clients: Finisar Corporation; II-VI Incorporated;

 

Author: Ambrogio Visconti