Engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has completed its acquisition of broadband wireless and wireline communications component maker Anadigics Inc of Warren, NJ, USA for about $78.2m. The purchase price was funded primarily from the firm's existing capacity under its credit facility.
As a result of the merger, Anadigics has become a subsidiary of II-VI, with its common stock being delisted and ceasing trading on Nasdaq.
Also, II-VI's outlook for fiscal third-quarter 2016 (issued on 26 January) has now been raised, from revenue of $185-195m to $190-198m. Adjusted earnings per share (EPS) is expected to be $0.26‐0.29 (inside the original guidance range of $0.25-0.29).
The results exclude one‐time items, but do include the results of operations for two months of EpiWorks Inc of Champaign-Urbana, IL, USA (which manufactures epitaxial wafers for optical components, wireless devices and high-speed communication applications) - acquired on 1 February - and the results of Anadigics for 15-31 March. One‐time items are expected to be $0.05-0.06 per share and include investment banking and legal fees and one‐time expense for fair value inventory adjustments. EPS on a reported basis is now expected to be $0.21-$0.23.
II-VI has begun its evaluation of assets and integration with the leadership teams of EpiWorks and Anadigics. This work is expected to give rise to additional one‐time costs.
