Corning to Acquire Pirelli's Optical Components and Devices Business

Corning, New York, Sept. 28 -- Corning Inc. has acquired a 90 percent interest in Pirelli SpA's optical components and devices business for about $3.6 billion in cash. Cisco Systems Inc owns the other 10 percent interest.
Based in Milan, Italy, Pirelli manufactures lithium niobate modulators, pump lasers, certain specialty fibers and fiber gratings used in optical networks. Corning will make an initial payment of about $3.4 billion, followed by a payment of $180 million after Pirelli achieves certain business goals.
The acquisition of Pirelli's active component technologies and products significantly adds to our capabilities in the transmission segment of the optical layer, said Roger G. Ackerman, chairman and CEO of Corning. The combination of Pirelli's business with our leading position in optical fiber and photonic technologies enables us to continue to provide our customers with an enhanced value proposition for high-speed next generation systems.
Corning expects to finance the purchase with proceeds received from the issuance of a combination of equity and convertible debt securities. Financing will be headed by Goldman Sachs & Co.