Koch Industries (Wichita, KS), a global conglomerate, is acquiring fiber optics component maker Oplink Communications (Nasdaq:OPLK; Fremont, CA) in an all-cash transaction for approximately $445 million. In the deal, Koch Optics will commence a tender offer and subsequent merger for all of the outstanding shares of Oplink common stock for $24.25 per share, which represents a 14% premium to the closing price on November 18, 2014.
Oplink will be managed by Molex (Lisle, IL), a global electronics components company and Koch Industries subsidiary. "Oplink will significantly expand Molex's fiber optic capabilities for technology development and new product innovation," said Tim Ruff, Molex's senior vice president, business development and corporate strategy.
Joe Liu, CEO of Oplink, said, "This transaction provides our shareholders with immediate and substantial cash value for their investment. Our Board is confident that this combination will create a stronger and more comprehensive offering for the fast growing wireless, datacom, metro, and long-haul telecom markets."
Koch Industries is one of the largest private companies in America with annual revenues of about $115 billion, according to Forbes. It owns a diverse group of companies involved in refining, chemicals, grain processing and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; electronic components; commodity trading; minerals; energy; ranching; glass; and investments. Molex, established in 1938, operates 45 manufacturing locations in 17 countries.