Viavi Solutions announced a fourth, unsolicited bid to acquire EXFO, which is undertaking a Go Private transaction. Viavi's new offer raises the bid from US$7.50 to US$8.00 in cash per share.
Viavi said its higher offer reflects EXFO's recently announced fiscal third quarter 2021 financial results in which bookings increased 47.2% year-on-year to US$87 million with a book-to-bill ratio at 1.20. EXFO's business strength reflects both a macroeconomic recovery and secular industry growth demand driven by 5G wireless and fiber network deployment. EXFO's strong results and future prospects further underpin the inadequate US$6.00 consideration of the Going Private Transaction.
Mr. Germain Lamonde, founder of EXFO, issued the following statement:
"Viavi Solutions Inc. (Viavi) made a fourth unsolicited, non-binding proposal to acquire EXFO Inc. (EXFO), and, for the fourth time, I make it crystal clear to Viavi and to my board of directors at EXFO that as controlling shareholder of EXFO, I would not consider any transaction with Viavi, or any other change of control transaction. Viavi knew full well I would reject any new non-binding, non-executable tentative proposal, which in my view is only intended to create distortion in the current go-private process and is simply aimed at eliminating Viavi’s main competitor – it is clearly not in the best interest of Viavi and EXFO customers as they would end up paying much higher prices for the products we sell, having less services and no longer benefit from EXFO’s incredible innovation engine."
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