Lumentum LLC to acquire Coherent Inc. in a £4.1 billion cash and stock transaction. Corporate Finance Manager, Ryan Niblock shares his perspective on the recent deal which is set to create one of the world’s largest and most diverse photonics technology companies. As the shift to increasingly digital and virtual approaches to work and daily life accelerates, the acquisition will serve the global client base and markets that increasingly utilise the products and technologies.
The merger involves two leading players in the photonics industry
Lumentum is a major designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide. Coherent supply fibre laser solutions, optics and sensors. Both companies are listed on the NASDAQ and based in California.
Why is it a good deal?
- This is the third major strategic acquisition for Lumentum over the past three years as the company looks to become the global leader in the optical manufacturing and innovation. Lumentum has previously acquired Oclaro in 2018 and acquired the technology assets from TriLumina in November 2020.
- The merger will give Lumentum a larger client base allowing their existing clients the opportunity to expand into new sectors.
- The deal is likely to deliver $150m of synergy savings within 24 months of the transaction completing.
How can HURST help you and your business
At HURST we focus on identifying the right strategic buyers for your business in order to give you opportunity to maximise your exit value.
The Corporate Finance team at HURST can help with the following:
- Developing an acquisition strategy.
- Identifying and making approaches to targets.
- Valuing a business and making offers.
- Business planning & financial modelling.
- Advising on commercial and tax efficient deal structures.
- Managing the legal and due diligence process.
Without fee or obligation, we can give you an indication of how much your business is worth and what your prospects for a sale might be. Click here.