Finisar Buys New Focus Assets

Finisar and New Focus sign definitive agreement on passive optical component product line for approximately $12.75 million

April 24, 2002

1 Min Read

SUNNYVALE, Calif. -- Finisar Corporation (Nasdaq: FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, today announced that the Company has entered into a definitive agreement to purchase the passive optical component product line from New Focus, Inc. (Nasdaq: NUFO), a leading supplier of innovative products serving the telecommunications, test and measurement and photonics tools markets. Under the terms of the agreement, Finisar will acquire the physical assets and intellectual property associated with New Focus' passive optical component product line. The physical assets include development and production equipment as well as certain raw material and finished goods inventories. New Focus will assign to Finisar the intellectual property rights to fifty pending and issued patents, proprietary know-how, and trademarks associated with its passive fiber optic components. New Focus will retain exclusive rights for use of this intellectual property outside the field of fiber optic communications. Finisar will grant to New Focus the ability to resell these passive optical components through New Focus' photonics tools catalog. Additionally, as part of the transaction, Finisar will employ certain key personnel from New Focus that have been associated with the passives product line. New Focus will receive total consideration of approximately $12.75 million under the terms of the agreement. New Focus will receive an initial payment of approximately $6.75 million payable in the form of Finisar common stock that will be freely tradable. New Focus will also receive royalty payments that are subject to guaranteed minimum annual payments totaling $6.0 million during the first three years of the agreement. The royalty payments are based on a percentage of the sales of all products that utilize the transferred technology. Finisar Corp. New Focus Inc.

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