SHERMAN, Texas -- Finisar, the high tech sensor manufacturer with a new facility in Sherman that makes key components for Apple iPhones, announced Friday it's being purchased by a competitor.

Finisar said it has entered a merger agreement with II-IV Incorporated, which is headquartered in Pittsburgh.

The value of the cash-and-stock transaction was estimated by the companies to be $3.2 billion.

"We have long admired Finisar and have a great deal of regard for its founders and its talented global team," said II-VI CEO Vincent Mattera in a written statement. "We look forward to welcoming Finisar to the II-VI family and further strengthening our competitive position in the industry.”

According to the companies, the combination will make them competitive with the newly-merged MKS Instruments and Electro Scientific Industries in the photonics and compound semiconductor segment.

"The merger should create substantial growth potential," said Stacey Jones, executive vice president of the Sherman Economic Development Corporation. "With room to grown at our Sherman Finisar facility, it seems like a good opportunity for Sherman."

Finisar cut the ribbon on its new 700,000 square foot campus in Sherman last July. It builds 3-D Vertical Cavity Surface Emitting Laser sensing components used in the latest Apple iPhone products for facial recognition. Finisar also has a manufacturing facility in Allen, Texas.

"I had an opportunity to visit the Sherman and Allen plants just in the last few weeks or so," Mattera said in a conference call announcing the merger Friday morning. "I'm excited to see the efforts that are going on in Sherman and the hard work that the team are doing in Allen as well."

The companies said they expect the merger to be complete in the middle of 2019. Jones said it should have a positive impact on Grayson County.

KTEN's Amelia Mugavero contributed to this report.