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March 10, 2021, 6:10 a.m. EST

Coherent's stock gains after agreeing on increased buyout deal with Lumentum

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By Tomi Kilgore

Shares of Coherent Inc. /zigman2/quotes/210489432/composite COHR -1.02% rose 1.8% in premarket trading Wednesday, after the laser technology company announced an amended buyout agreement with Lumentum Holdings Inc. /zigman2/quotes/204419752/composite LITE -4.40% , in which the value of the cash-and-stock deal increases to $6.6 billion from about $5.7 billion. The revised terms comes after II-VI Inc.'s /zigman2/quotes/202572630/composite IIVI -3.61% unsolicited bid, valued at about $6.4 billion, or $260 a share, was deemed by Coherent earlier this week to be "superior" to the original deal with Lumentum. Under terms of the revised bid, Coherent shareholders will receive $175 in cash and 1.0109 Lumentum shares for each Coherent share they own. Based on Tuesday's closing prices, that values Coherent's stock at $261.62 each, a 7.0% premium. "By increasing the cash and lowering the stock in the consideration mix relative to our prior agreement, we are able to deliver more overall value to Coherent stockholders while at the same time increasing earnings accretion," said Lumentum Chief Financial Officer Wajid Ali. He expects synergies of more than $190 million a year within three years after the closing, and expects the deal to add to adjusted earnings in the first year. Lumentum shares were little changed ahead of the open and II-VI's stock was up 0.8%, while futures /zigman2/quotes/209948968/delayed ES00 -1.02% for the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.97% inched up less than 0.1%.

/zigman2/quotes/210489432/composite
US : U.S.: Nasdaq
$ 253.02
-2.62 -1.02%
Volume: 386,743
Jan. 19, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.33 billion
Rev. per Employee
$292,521
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/zigman2/quotes/204419752/composite
US : U.S.: Nasdaq
$ 99.44
-4.58 -4.40%
Volume: 1.25M
Jan. 19, 2022 4:00p
P/E Ratio
18.88
Dividend Yield
N/A
Market Cap
$7.52 billion
Rev. per Employee
$309,505
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/zigman2/quotes/202572630/composite
US : U.S.: Nasdaq
$ 65.96
-2.47 -3.61%
Volume: 1.62M
Jan. 19, 2022 4:00p
P/E Ratio
26.57
Dividend Yield
N/A
Market Cap
$7.26 billion
Rev. per Employee
$137,953
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 4,524.50
-46.75 -1.02%
Volume: 1.93M
Jan. 19, 2022 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,532.76
-44.35 -0.97%
Volume: 2.48B
Jan. 19, 2022 4:58p
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