CORNING, N.Y., May 23 -- In exchange for approximately $500-million in Corning stock, IntelliSense Corp. will sell its remaining 67 percent to Corning Inc. IntelliSense will receive the stock pending certain performance goals set by Corning. For Corning, which already owns the other 33 percent of IntelliSense, the transaction means an enterprise value of 100 percent of IntelliSense worth approximately $750 million.
Under the acquisition Corning will gain access to IntelliSense's micro-electro-mechanical systems (MEMS) design software, qualified fabrication capabilities and intellectual property. Corning said that the acquisition bolsters its commitment to supply optical switching products for telecommunications applications, which could become a multi-billion dollar market by 2003 according to industry analysts. Corning's initial 33-percent ownership of IntelliSense was acquired in June of 1999.
The acquisition of IntelliSense will enhance Corning's aggressive development of optical cross connect switching modules for our equipment manufacturing customers, said Wendell P. Weeks, Corning's executive vice president for Opto Electronics.