Oplink Communications To Be Acquired By Koch Industries For About $445 Mln

(RTTNews) - Oplink Communications Inc. (OPLK) has agreed to be acquired by privately-held Koch Industries Inc. for about $445 million in cash, the two companies said Wednesday. Shares of Oplink are gaining almost 14 percent in pre-market trades following the announcement.

Fremont, California-based Oplink Communications is a provider of optical communication components, intelligent modules and subsystems.

Wichita, Kansas-based Koch Industries is one of the largest private companies in America. It owns a diverse group of companies involved, among others, in refining, chemicals, grain processing and biofuels, and forest and consumer products.

Under the terms of the deal, Koch Optics Inc. will commence a tender offer and subsequent merger for all of the outstanding shares of Oplink common stock for $24.25 per share. Koch Optics is a wholly owned subsidiary of Koch Industries. The deal has been approved by the boards of directors of both companies.

The purchase price a 14 percent premium to Oplink's closing price of $21.25 on Tuesday, November 18, 2014. The transaction is not conditioned on financing.

Following completion of the deal, Oplink will be managed by Molex, the Lisle, Illinois-based electronics components subsidiary of Koch Industries. Koch Industries noted that the transaction represents an expansion of its technology platform operated under Molex and will significantly expand Molex's fiber optic capabilities.

Doug Busch, vice president and general manager of Molex's Global Fiber Optic business said, "Oplink's team brings a broad range of talent and capabilities that are complementary to Molex. Our combined organizations will enable us to create more value for our customers and will accelerate our development of complete integrated optical solutions."

OPLK closed Tuesday's trading at $21.25. In Wednesday's pre-market activity, the stock is up $2.91 or 13.69 percent to $24.16.