On 9 November 2018, II-VI Incorporated announced plans to acquire Finisar in a cash and stock deal with an equity value of $3.2 billion; the acquisition is expected to close in the middle of 2019. The combined company will generate approximately $2.5 billion in annual revenue. The markets for photonic products are diverse and increasingly competitive, and product R&D and fabrication facilities for compound semiconductors are very expensive. Consolidation to achieve scale is a viable strategy to maintain the level of investment required to develop differentiated products serving fast-growing, diverse markets. With the Finisar acquisition, II-VI nearly doubles in size in terms of revenue, R&D investment, and employees. Clients, please log in to view the full content.