Filed
by
Lumera Corporation Pursuant to Rule 425
Under
the
Securities Act of 1933
And
Deemed Filed Pursuant to Rule 14a-12
Under
the
Securities Exchange Act of 1934
Commission
File No.: 000-50862
Subject
Company: GigOptix, LLC
This
filing relates to the proposed transaction pursuant to the terms of the
A
greement
and Plan of Merger by and among Lumera Corporation (“Lumera”), GigOptix LLC,
Galileo Merger Holdings, Inc., Galileo Merger Holdings, Inc., Galileo Merger
Sub
L, Inc. and Galileo Merger Sub G, LLC dated as of March 27, 2008
.
*
* * *
Lumera
will file with the SEC a registration statement on Form S-4, which will contain
a proxy statement/prospectus regarding the proposed merger transaction, as
well
as other relevant documents concerning the transaction. WE URGE INVESTORS AND
SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY
STATEMENT/PROSPECTUS AND THESE OTHER DOCUMENTS WHEN THEY BECOME AVAILABLE,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LUMERA, GIGOPTIX LLC
AND
THE PROPOSED TRANSACTION. A definitive proxy statement/prospectus will be sent
to Lumera’s stockholders seeking their approval of Lumera’s issuance of shares
in the transaction and to members of GigOptix LLC.
Investors
and security holders may obtain a free copy of the registration statement and
proxy statement/prospectus (when available) and other documents filed by Lumera
with the SEC at the SEC’s web site at
www.sec.gov
.
Free
copies of Lumera’s SEC filings are available on Lumera’s web site at
www.lumera.com
and also
may be obtained without charge by directing a request to Lumera Corporation,
19910 North Creek Parkway, Bothell, WA 98011-3008, Attention: Investor Relations
or by telephoning us at (425) 415-6847.
Lumera
and its directors and executive officers may be deemed, under SEC rules, to
be
participants in the solicitation of proxies from Lumera’s stockholders with
respect to the proposed transaction. Information regarding Lumera’s directors
and executive officers is included in its annual report on Form 10-K filed
with
the SEC on March 17, 2008, as amended by Form 10-K/A filed with the SEC on
March
27, 2008. More detailed information regarding the identity of potential
participants and their direct or indirect interests in the transaction, by
securities holdings or otherwise, will be set forth in the registration
statement and proxy statement/prospectus and other documents to be filed with
the SEC in connection with the proposed transaction.
Lumera
Corporation Announces Agreement to Merge with GigOptix, Uniting Lumera's
Ground-Breaking Modulator Technology with a Leading Provider of Electronic
Engines for High Speed Optical Interconnects
Dr.
Avi Katz to be CEO and Chairman of Combined Company
BOTHELL,
Wash.--( March 27, 2008)--
--Lumera
Corporation (NASDAQ: LMRA), a leader in the field of photonic communications,
announced today it has entered into an agreement to merge with privately held
GigOptix LLC, a leader in integrated circuits for optically connected
communication systems. The combined company will be listed on the NASDAQ market
under the name GigOptix, Inc., and will be led by GigOptix's Chief Executive
Officer and Chairman Dr. Avi Katz, who will serve as CEO and Chairman of the
combined company.
In
conjunction with the merger, we have elected to cease investing in Plexera
Bioscience LLC, Lumera's life science tools subsidiary. The decision to exit
this business will allow the combined company to focus its resources solely
on
the electro-optic space. Day to day operations in Plexera will be discontinued
immediately in order to minimize cash expenses while Lumera seeks ways to
realize value from Plexera's assets and intellectual property.
"We're
proud of the accomplishments and progress we've made in both our electro-optic
and bioscience businesses. However, we do not have enough cash resources to
see
both businesses reach their full commercial potential. After carefully
considering our strategic options, it became clear that the greatest shareholder
value would be derived by focusing on our electro-optic business," said C.
James
Judson, Chairman of Lumera. "Lumera's strategic roadmap calls for growing our
EO
product offerings to include optical modules utilizing our innovative polymer
technology. GigOptix is currently a leader in electronic engines for high speed
optical interconnects. Integrating our superior polymer modulators with
GigOptix's leading drivers, receivers and electronic engines will create
products that are highly competitive in the communications marketplace and
other
markets for optically connected devices and systems. The net result is the
creation of a company that we believe can be larger than the sum of its parts
and substantially accelerates our ability to reach the milestones in our
strategic roadmap."
Judson
continued, "Another important benefit of this transaction is that Dr. Avi Katz
will become CEO of the company, concluding our eight month long search for
a
CEO. The Lumera Board believes that Avi is ideally suited to lead the combined
company to reach its full potential as evidenced by his industry expertise
and
recent experience building GigOptix organically and through acquisitions. The
combined company is expected to achieve a broader and more balanced revenue
stream. Pre-merger, Lumera's revenues primarily come from critical government
funded research projects leading potentially to large commercial product
opportunities. GigOptix generates product revenues selling its 10G and 40G
drivers and receivers to a global base of blue chip customers. Many of
GigOptix's customers -- leaders in telecom, datacom, and consumer electronics
--
are also potential customers for Lumera's modulators, some of whom are currently
in the evaluation stage. The combined company expects to align product
development for 40G and 100G components to provide a higher value and broader
solution set to its customers, which we believe will drive more rapid revenue
growth and market reach."
"This
merger brings many benefits beyond the innovative technology of both companies,"
said Dr. Katz. "GigOptix's operations-focused management team brings extensive
experience managing a virtual manufacturing business model, which will allow
the
combined company to keep overhead low while delivering innovative solutions
for
our customers. Our business model will enable us to continue providing customers
with price-performance leading products while maintaining tight control over
our
operating costs. GigOptix's revenue for the first calendar quarter of 2008
is
projected to be approximately $2 million and we expect to continue growing
quarter over quarter by 10% to deliver $2.2 million in the second calendar
quarter of 2008. On a combined basis, the two companies expect to generate
approximately $6 million in revenue for the first half of 2008, which we believe
provides a great base for our future growth."
Under
the
terms of the merger agreement, DBSI, Inc., which is currently GigOptix's
majority shareholder through its subsidiaries Stellar Technologies and iTerra
Communications LLC, will become the new company's largest shareholder. Doug
Swenson, Founder and President of DBSI Group of Companies said, "Since launching
GigOptix last year, the company has exceeded all our expectations. We are very
excited by the synergies in the proposed merger of Lumera and GigOptix and
look
forward to the creation of additional shareholder value."
Lumera
will issue approximately 20 million shares and options to members and employees
of GigOptix, resulting in an approximately 40 million shares outstanding for
the
combined company. In addition, Lumera will issue a number of options and
warrants to GigOptix generally matching options and warrants outstanding at
Lumera.
The
transaction is subject to Lumera shareholder and other regulatory approval
and
is expected to close near the beginning of the third quarter of 2008. GCA
Savvian provided financial advice to Lumera's Board of Directors in conjunction
with the merger including an opinion that the merger consideration is fair
from
a financial point of view to the stockholders of Lumera.
Conference
Call
Lumera
will host a conference call to discuss the merger announcement on Friday, March
28, 2008 at 10 AM EDT. The call will be broadcast over the Internet and can
be
accessed from the company's web site at www.lumera.com. Additionally, U.S.
participants may join the conference call by dialing 866-510-0710 ten minutes
prior to the start of the conference. International participants can dial
617-597-5378. The conference passcode number is 79584848. A telephone replay
of
the call will be available through April 4, 2008 and can be accessed by dialing
888-286-8010 (for U.S. participants) or 617-801-6888 (for international
participants). The replay passcode is 31647418. A replay of the conference
call
will be available on the company's web site.
About
Lumera
Lumera
is
a leader in photonic communications. The company designs electro-optic
components based on proprietary polymer compounds for the telecommunications
and
computing industries. For more information, please visit
www.lumera.com.
About
GigOptix
Driving
precision in optical networks, GigOptix is a leader in integrated circuits
for
optically connected communication systems. GigOptix's 10G and 40G drivers
provide the industry's lowest power consumption, smallest form factor, and
highest signal integrity to enable their customers to reduce manufacturing
cost
and transceiver size while providing the highest levels of performance in the
industry. For more information, please visit www.gigoptix.com.
###
Certain
statements contained in this release are forward-looking statements that involve
a number of risks and uncertainties. Factors that could cause actual results
to
differ materially from those projected in the company's forward-looking
statements include the following: the possibility that the merger will not
be
consummated, market acceptance of our technologies and products; our ability
to
obtain financing; our financial and technical resources relative to those of
our
competitors; our ability to keep up with rapid technological change; government
regulation of our technologies; the possibility that we will not receive any
significant value from the sale of the assets of the Plexera business; our
ability to enforce our intellectual property rights and protect our proprietary
technologies; the ability to obtain additional contract awards and to develop
partnership opportunities; the timing of commercial product launches; the
ability to achieve key technical milestones in key products; and other risk
factors identified from time to time in the company's SEC reports, including
its
Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q.
CONTACT:
Investor Relations:
Lumera
Corporation
Helene
F.
Jaillet, Ph.D, 425-398-6546
or
Media:
The
Summit Group Communications
Todd
Wolfenbarger, 801-595-1155
801-244-9600
cell
or
Press
Relations:
GigOptix,
LLC
Parker
Martineau, 650-424-1937 ext. 102
650-796-6197
cell
SOURCE:
Lumera Corporation
Lumera (NASDAQ:LMRA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lumera (NASDAQ:LMRA)
Historical Stock Chart
From Jul 2023 to Jul 2024