(Reuters) – Laser and fiber optic specialist Lumentum Holdings Inc said Tuesday it would acquire laser manufacturer Coherent Inc in a $ 5.7 billion deal, as it looks to penetrate the laser and photonics market deeper. fast-growing.
Lumentum’s cash and stock contract for Gay represents a 49% base price to the company’s closing stock price on January 15th.
Sensible stock holders will receive $ 100 per share in cash and 1,1851 shares of Lumentum common stock for each share held and are expected to own about 27% of the company combined.
Lumentum is famous for the outsourcing of wireless network components and its 3D face recognition technology, which many analysts say powers Power Face, Animoji and mode features Apple photo.
The San Jose, California-based company plans to increase its share of the laser technology market through the purchase. That market currently accounts for about 10% of Lumentum’s revenue.
The deal is expected to close in the second half of 2021.
Shares of Lumentum ended 11% lower at $ 94.60 on Tuesday. Sensible shares jumped 29.7% to close at $ 197.01 in light volume.
Deutsche Bank was a financial advisor and provided debt financing to Lumentum, and Consolidated Bank of America advised.
Both companies also reported quarterly start-up results.
Reporting with Tiyashi Datta in Bengaluru and Krystal Hu in Florida; Edited by Shinjini Ganguli and Matthew Lewis