SDL Finalizes Acquisition of Photonic Integration Research

SAN JOSE, Calif., June 7 -- SDL Inc. has completed its acquisition of Photonic Integration Research Inc. (PIRI). Adhering to the May 10, 2000 agreement, SDL issued 8,461,663 shares of its stock and transferred $31.7 million in cash in exchange for 100 percent of PIRI stock. Based on SDL's June 2, 2000 closing stock price, the total consideration is valued at about $2.2 billion.
Located in Columbus, Ohio, PIRI manufactures arrayed waveguide gratings that allow for individual wavelength channels to be routed in fiber optic systems. This technology is used in optical multiplexing and demultiplexing applications for dense wavelength division multiplexing (DWDM) fiber-optic systems.
From the acquisition of PIRI, SDL gets a critical silicon wafer-based optical integration technology that is expected to improve performance and lower costs in next generation DWDM systems. SDL -- traditionally a producer of active components in fiber optic systems -- hopes the acquisition of PIRI will enable them to thrive in the production of advanced passive components as well.