The deal is expected to close in the second half of the year, subject to approval of the holders of both companies and regulatory approvals.
The companies said the deal should be accretive to non-GAAP earnings in the first full year after closing. The deal is expected to provide more than $150 million in annual run-rate synergies within 24 months of close,
The companies said that the deal combines “Coherent’s leading photonics and lasers businesses ... with Lumentum’s leading telecom, datacom, and 3D sensing photonics businesses, creating a diversified photonics technology company with significantly increased scale and market reach.” Lumentum said the deal accelerates its position in the market for lasers and photonics outside of communications and 3D sensing.
“Today’s announcement is an important advancement of Lumentum’s strategy,” Lumentum CEO Alan Lowe said in a statement. “In our five years as a standalone public company, we have focused on developing the most innovative products and technology in our industry and partnering with market leading customers to help them compete and win in their markets. As we look ahead, we are thrilled to join forces with Coherent to create one of the world’s largest and most diverse photonics technology companies with leading positions in the growing market for photonics.”
Lumentum also said it expects revenue for the fiscal second quarter ended Dec. 26 of $478.8 million, with non-GAAP profits of $1.91 to $1.99 a share; the Wall Street analyst consensus estimates are $479.6 million and $1.82, respectively.
Coherent said it expects revenue for the fiscal first quarter ended Jan. 2 to range from $325 million to $327 million, with non-GAAP operating income ranging from $36.1 million to $37.9 million. The Street has been expecting revenue for the quarter of $313.1 million.
