US-based engineering firm II-VI is reassuring investors that its acquisition of Finisar should proceed as planned despite the US government’s placement of Huawei on its trade blacklist.
The acquisition was approved by shareholders of both companies earlier this year, paving the way for a merger that could significantly extend the applications of Finisar’s 3D Sensing Vertical Cavity Surface Emitting Laser technology, which was used in Apple’s trailblazing Face ID biometric authentication system. But with the latest major disruption out of the escalating US-China trade war, II-VI has sent its investors an update indicating that while Finisar is “evaluating the effects” of the Huawei blacklisting on their company, it appears that the damage will be minimal.
“At this time, we do not expect these developments to affect the merits of the transaction”, the company said, adding that the merger is expected to close this summer.
II-VI’s investor note went on reiterate the case for its acquisition of Finisar, asserting that its laser-based 3D sensor technology represents a ‘disruptive megatrend’ that can open new market opportunities to the engineering firm, which already boasts of a global staff of over 12,000 and quarterly revenues exceeding $340 million.
‘The iPhone is just the tip of the iceberg for potential applications’, the investor note asserted, listing additional application areas including automotive LiDAR, biometric security, VR/AR, tablets, and even eCommerce and video games.
The proposed merger has already received necessary clearances from antitrust and competition authorities in Germany, the US, Romania, and Mexico, and is awaiting a final clearance from China’s State Administration for Market Regulation.