Broadband Demand Prompts Merger
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JDS Uniphase Corp. and E-TEK Dynamics Inc. merged Tuesday in a $15 billion deal prompted in large part to the increasing demand for bandwidth.
JDS will exchange 1.1 of its shares for each share of E-TEK. The deal must be approved by E-TEK shareholders and regulators. JDS Uniphase designs and distributes a variety of fiber optic products that are deployed across optical networks used by telecommunications and cable companies. E-Tek is a designer and manufacturer of modules and components for fiber optic systems, including wavelength division multiplexers that are designed to increase the capacity of fiber networks.
The companies said the merger was prompted by aggressive broadband deployment plans of telecommunications companies. They believe the merger will allow them to more quickly address demands to shorten product development cycles and bring to market new equipment and functionality.
"Today's announcement marks the beginning of a great partnership between two companies with a common passion for optical networking. We strongly believe that our combined manufacturing capacity and product innovation capability will strengthen our ability to meet and exceed customer expectations," said Jozef Straus, JDS Uniphase co-chairman, president and chief operating officer.