Optical Technology Makers to Merge (OCLR, OPXT)

After the markets closed last night, Oclaro Inc. (NASDAQ: OCLR) and Opnext Inc. (NASDAQ: OPXT) announced a definitive merger agreement that will give Opnext shareholders 0.42 shares of Oclaro common stock for each share of Opnext stock they own. At last night’s closing price of $4.66/share for Oclaro, that values Opnext at around $170 million.

The transaction is expected to close in three to six months and Opnext shareholders will own 42% of the combined company. The companies anticipate transaction costs of $20-$30 million and annualized cost synergies of $35-$45 million within 18 months of the deal’s closing.

Shares of Opnext are up about 47% today, at $1.66 in a 52-week range of $078-$3.05.

Shares of Oclaro are down about -8.8% at $4.25 in a 52-week range of $2.68-$12.02.