EXFO Acquires Burleigh for $275 Million
EXFO Electro-Optical Engineering Inc. (Quebec City, Canada) entered into a definitive agreement to acquire Burleigh Instruments Inc. for $235 million in EXFO stock and $40 million in cash. Burleigh, a privately held company in Fishers, NY, is a supplier of dense wavelength-division multiplexing (DWDM) wavelength-measurement instruments and precision positioning equipment. This acquisition enables EXFO to accelerate growth in its industrial and scientific division, which mainly focuses on the needs of the growing optical-component and DWDM transmission-system market.
Burleigh, in operation for 28 years, is known for its high-performance optical wavelength meters and precision positioning equipment. For calendar-year 2000, Burleigh, which has 110 employees, expects total revenues of $20.5 million. EXFO plans to retain the personnel, management, and facilities of Burleigh. The transaction will be accounted for under purchase accounting, with goodwill amortized over five years. The deal is expected to be neutral in FY2001 on a cash earnings per share basis, taking into account eight months of Burleigh's operations. In FY2002, it should be accretive on a cash earnings per share basis. Cash earnings do not include amortization of goodwill.
The Burleigh acquisition has been approved by the boards of directors of both companies, subject to regulatory approvals and other customary closing conditions. The stock consideration is subject to a 10% collar based on EXFO's closing price of $38.13 on Oct. 31, 2000. The deal is expected to close before the end of the calendar year.
Valerie Coffey-Rosich | Contributing Editor
Valerie Coffey-Rosich is a freelance science and technology writer and editor and a contributing editor for Laser Focus World; she previously served as an Associate Technical Editor (2000-2003) and a Senior Technical Editor (2007-2008) for Laser Focus World.
Valerie holds a BS in physics from the University of Nevada, Reno, and an MA in astronomy from Boston University. She specializes in editing and writing about optics, photonics, astronomy, and physics in academic, reference, and business-to-business publications. In addition to Laser Focus World, her work has appeared online and in print for clients such as the American Institute of Physics, American Heritage Dictionary, BioPhotonics, Encyclopedia Britannica, EuroPhotonics, the Optical Society of America, Photonics Focus, Photonics Spectra, Sky & Telescope, and many others. She is based in Palm Springs, California.