A $305mln agreed takeover deal sent shares in Alliance Fiber Optic Products Inc (NASDAQ:AFOP) surging on Friday morning.
In late morning trading the shares were up 19% at $18.43 after Corning Inc (NYSE:GLW), a heavyweight in the glass manufacturing business, made an offer of $18.50 cash per share, securing the support of the board of the designer and maker of high-performance passive optical components.
Alliance Fiber's products are widely used by data center operators, telecoms companies and other organizations that need high-speed data transfer conduits, many of which are existing customers of Corning.
Alliance Fiber will become part of Corning's Optical Communications business, and owing to identified synergies Corning expects the acquisition to enhance earnings in the first year of ownership.
Shares of Corning ended the morning off 16 cents at $20.52 in a rising market.