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September 25, 2003
OXFORDSHIRE, U.K. -- Bookham Technology plc (LSE: BHM; NASDAQ: BKHM) today announced that it has entered into an agreement under which it will acquire Ignis Optics, Inc ("Ignis"), a provider of optical modules for communications networks, based in San Jose, California.
Ignis designs and manufactures small form-factor pluggable (SFP and XFP) single-mode optical transceivers for current and next-generation optical datacom and telecom networks. Ignis' leading-edge transceiver design skills provide an excellent match to Bookham's position in optics and electronics design. The combined team will accelerate Bookham's move to provide a full XFP and SFP product set at multiple speeds and different reaches in order to address the majority of new datacom optics opportunities. This represents a new large market for Bookham with significant growth opportunities.
Under the terms of the agreement, Bookham will acquire Ignis Optics, Inc in consideration for $15.5 million which is to be satisfied by the issue at completion of new Bookham shares having this value, as determined on a 20 day rolling average based on the 15 trading days prior to today's date including today and the five trading days thereafter. Additionally, Bookham shares up to a value of $1.5 million (the number to be determined on the same basis as the shares issued at completion) will be issued in early 2005, should Ignis meet certain performance criteria during the 2004 fiscal year.
Giorgio Anania, Bookham's President and Chief Executive Officer, was enthusiastic about the additional opportunities that the Ignis acquisition would bring. "Bookham is currently the number two telecom optical components supplier worldwide, but to date we have not played significantly in the datacom market, which is a large market opportunity for our optical know-how and manufacturing capabilities. With this agreement to acquire Ignis, we are signaling our intent to enter this market. The technical team at Ignis is widely regarded as having a clear leadership in the field of next-generation pluggable optics. We see the combination of our skill sets as further enhancing Bookham's market opportunities."
Michael Lebby, co-founder of Ignis, echoed these comments. "Bookham's technical strength and strong channels to market are the perfect match to ensure rapid revenue growth for Ignis' portfolio of pluggable optical transceiver modules. Bookham's broad customer base will enhance and diversify the market exposure of our optical transceivers."
Application will be made to admit the new ordinary shares in Bookham to the Official list of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities. Admission of the new shares is expected to take place following completion of the acquisition, expected in early October.
Bookham Technology plc
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