NEW YORK (TheStreet) -- Shares of Alliance Fiber Optic Products (AFOP) are jumping 19.21% to $18.43 at the start of trading Friday morning, after it was announced that the technology company will be acquired by Corning (GLW) for approximately $305 million.
Under the terms of the deal, Corning will make an all-cash tender offer to acquire all of Alliance Fiber Optic Products' common shares.
AFOP designs and manufactures high-performance passive optical components, which are used by cloud data-center operators and leading datacom and telecom OEMs.
"Combining AFOP's components expertise with Corning's broad portfolio of connectivity solutions further strengthens our position in the high-growth, cloud data-center market segment," Corning Optical Communications' executive VP Clark S. Kinlint said. "And, it adds additional products that Corning can offer our broad customer base while providing an opportunity for manufacturing synergies."
Corning is a manufacturer of specialty glass and ceramics and also creates and makes keystone components that enable systems for consumer electronics, mobile emissions control, optical communications and life sciences.
Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on Alliance Fiber Optic Product. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AFOP