Face ID Supplier
II-VI announced the acquisition today. It consisted of a cash-and-stock deal at a 37.7% premium on Finisar’s closing price from Thursday. Once the merger is complete Finisar shareholders will own about 31% of the new company. The merger is expected to be finalized mid-2019.
FInisar supplies components for Face ID, specifically the VCSELs (Vertical-Cavity Surface-Emitting Lasers) used in the TrueDepth camera in the iPhone X, iPhone XS, iPhone XS Max, and iPhone XR. Apple’s Advanced Manufacturing Fund gave Finisar US$390 million toward the end of 2017 to increase its production.
It’s unknown how this will affect Apple’s Face ID production, but Finisar probably isn’t the only supplier.