JDS Uniphase in $41bn stock merger with SDL

Electronics Times, July 17, 2000

Acquisitive Canadian fibre-optics components maker JDS Uniphase is merging with SDL in a stock deal worth $41bn, said to be the biggest technology merger outside of telephony.

US-based SDL integrates lasers with other optical or optoelectronic elements such as lenses, mirrors and light amplifiers.

Under the terms of the deal, which has yet to be approved by the boards of either company, 3.8 JDS Uniphase shares will be swapped for each SDL share. SDL will operate as a wholly-owned subsidiary of JDS Uniphase.

Don Scifres, SDL chief executive, said: "This combination brings together world class technical and manufacturing teams to deliver best- in-class products at increased volumes. We also expect the migration from hybrid integration and module level products to truly integrated system-on-a-chip."

News of the merger comes hot on the heels of last month's completion of JDS's $15bn merger with E-Tek Dynamics, a San Jose-based maker of wavelength division multiplexers. Analysts suggest the latest deal will be looked at by the US Justice Department, as was the acquisition of E- Tek, which was cleared only after several conditions were imposed.

In May, JDS acquired Fujian Casix Laser, and, in April, it bought Cronos Integrated Microsystems.