JDS Uniphase To Buy SDL For $41 Billion
JDS Uniphase Corp., an acquisitive fiber-optics concern, has reached an agreement to acquire rival SDL Inc. for about $41 billion in stock, a nearly 50% premium over SDL's closing stock price Friday.</br></br>The boards of the two companies have approved the deal, in what is believed to be the biggest technology merger on record. JDS just completed the purchase of E-Tek Dynamics Inc. for $15 billion on June 30, and began discussions with SDL almost the day that the E-Tek deal closed, according to Jozef Straus, JDS Uniphase's co-chairman and chief executive officer. Donald Scifres, SDL's chief executive, will become co-chairman of the board with Mr. Straus and a board member of JDS Uniphase. Marty Kaplan remains chairman of JDS, and Mr. Straus will remain chief executive.</br></br>The transaction values SDL's shares at $441.5125 a share, compared with Friday's closing stock price of $295.3125 in Nasdaq Stock Market trading. Each share of SDL will be exchanged for 3.8 shares of JDS Uniphase. Shares of SDL were up $10.875, and climbed last week on some takeover speculation, as well as on expectations of strong financial performance.</br></br>One reason why the price tag is so high is that Corning Inc., a rival fiber-optics concern, had been bidding for the San Jose, Calif.-based company as well, said one person familiar with the matter.</br></br>The deal shows how major manufacturers are moving rapidly to team up so they can add capacity and develop higher-performing products to keep up with surging demand for fiber-optic equipment. In particular, Messrs. Straus and Scifres pointed to the desire by vendors to bring products to market quickly as a driving force behind the deal.