Lumentum Holdings Inc. agreed to buy laser maker Coherent Inc. for $5.7 billion, in a deal that would combine two companies whose products are used in everything from laser eye surgery to semiconductor manufacturing.
Under the terms of the cash-and-stock deal announced Tuesday, Coherent shareholders would receive $100 and 1.1851 shares of Lumentum stock for each Coherent share. Coherent had a market value of $3.7 billion as of Friday’s close, while Lumentum’s was $8 billion.
The Wall Street Journal first reported the two companies were nearing such a deal Monday.
Santa Clara, Calif.-based Coherent makes lasers and related products used in medical and scientific equipment, industrial applications and semiconductor manufacturing. It was founded in 1966.
Milpitas, Calif.-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 Corp.
