A PYMNTS Company

Coherent In $5.7B Deal With Laser-Maker Lumentum

 |  January 19, 2021

Lumentum Holdings agreed to buy laser maker Coherent for US$5.7 billion, in a deal that would combine two companies whose products are used in everything from laser eye surgery to semiconductor manufacturing, reported the Wall Street Journal.

Under the terms of the cash-and-stock deal announced Tuesday, January 19, Coherent shareholders would receive US$100 and 1.1851 shares of Lumentum stock for each Coherent share. Coherent had a market value of US$3.7 billion as of Friday’s close, while Lumentum’s was US$8 billion.

Santa Clara, California-based Coherent makes lasers and related products used in medical and scientific equipment, industrial applications and semiconductor manufacturing. It was founded in 1966.

Milpitas, California-based Lumentum primarily makes optical components used in cloud networking, data transmission, and submarine communications. It also has a lasers segment with offerings used in sheet metal and circuit board manufacturing. It became a stand-alone company in 2015 when it was spun off from JDS Uniphase.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.