Coherent skyrockets 33% after Lumentum announces $5.7 billion acquisition of rival laser maker
Coherentstock spiked 33% Tuesday after Lumentumannounced it will acquire the rival laser maker for $5.7 billion.
- Shares of Lumentum fell on the news, losing almost $900 million in market cap versus Friday's closing figures.
- Both companies are rated favorably by analysts, boasting a combined 18 "buy" ratings versus just two "sell" ratings.
The $5.7 billion
Following the closing of the deal, Coherent stockholders are expected to own around 27% of the combined company. Two members of the Coherent board will also be appointed to the Lumentum board.
Founded in 1966, Santa Clara-based Coherent focuses on
Tuesday's deal will combine Coherent with San Jose-based Lumentum, a rival photonics company that creates optical components used in cloud networking, data transmission, and submarine communications.
Mattes continued, "we are excited to bring Coherent's strength in OLED display manufacturing, semiconductor wafer inspection, and life science instrumentation to Lumentum's portfolio."
Coherent stock now trades at over $200 per share and boasts a market cap of $4.93 billion as of Tuesday morning. The laser maker gained over $1 billion in market value versus Friday's closing mark of $3.7 billion.
Lumentum, on the other hand, saw shares fall around 11% Tuesday following news of the deal. The company erased $900 million in market cap versus Friday's close.
Coherent currently holds seven "buy" ratings, one "neutral" rating, and one "sell" rating from analysts, while Lumentum holds 11 "buy" ratings and one "sell" rating.
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