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Lumentum Delivers Revised Acquisition Bid for Coherent Worth $6.9B

Photonics.com
Mar 2021SAN JOSE, Calif., March 17, 2021 — Lumentum revised its proposal to acquire Coherent, delivering a cash and stock purchase offer valued at $6.9 billion. The Lumentum offer is in response to the latest Coherent acquisition proposal from II-VI, which was announced last week. Coherent, following its receipt of that II-VI proposal, said its board had determined II-VI’s latest bid to be superior to terms of a merger agreement it had with Lumentum on March 10. That proposal, II-VI said, carried an enterprise value of $6.8 billion.

Coherent said its board will now review the latest proposal from Lumentum — which represents the richest bid yet in the acquisition process (in terms of purchase offer price), and the fifth known bid from the company, and the 10th combined from Lumentum, II-VI, and MKS.

Under terms of Lumentum’s new proposal, each share of Coherent common stock would be exchanged for $220 in cash and 0.61 of a share of Lumentum common stock at the completion of the transaction.

Ongoing coverage of this acquisition, with analyst insights, is available on Photonics.com.

A timeline of the acquisition history:

Jan. 19: Lumentum announces agreement to acquire Coherent in $5.7B deal; Coherent stockholders to receive $100 per share in cash and 1.1851 shares of Lumentum common stock. Coherent is subject to a termination fee of more than $200 million if it accepts a competing bid.

Feb. 8: MKS Instruments announces unsolicited purchase bid to acquire Coherent in $6B deal; Coherent stockholders to receive $115 per share in cash and 0.7473 of a share of MKS common stock. Coherent announces it will enter discussions with MKS.

Feb. 12: II-VI announces unsolicited purchase bid to acquire Coherent in $6.4B deal; Coherent stockholders to receive $130 per in cash and 1.3055 II-VI common shares for each Coherent share.

Feb. 16: Coherent announces it will engage in discussions with II-VI.

March 8: Coherent announces its board determined a revised proposal from II-VI to be superior to terms of multiple revised Lumentum agreements, and a revised proposal from MKS. II-VI to acquire Coherent in $6.2B deal; Coherent stockholders to receive $170 per share in cash and 1.0981 shares of II-VI common stock.

March 8: Coherent notifies Lumentum that it intends to terminate their merger agreement unless Coherent receives a revised proposal from Lumentum by March 11.

March 8: MKS announces it is removing itself from acquisition consideration following its revised bid; MKS to acquire Coherent for $250 per share, composed of $135 in cash and $115 in shares of MKS common stock.

March 8: Lumentum announces its intent to review II-VI’s proposal.

March 10: Lumentum and Coherent sign a revised merger agreement; Lumentum to acquire Coherent in a deal worth $6.6B. Each share of Coherent common stock will be exchanged for $175 in cash and 1.0109 shares of Lumentum common stock. Coherent is subject to a termination fee of more than $200 million if it accepts a competing bid.

March 12: Coherent announces that its board had determined a revised proposal from II-VI to be superior to terms of the latest Lumentum merger agreement; II-VI to acquire Coherent in a deal carrying an enterprise value of $6.8B. Each share of Coherent common stock to be exchanged for $195 in cash and one share of II-VI common stock.

March 17: Coherent confirms its receipt of a new proposal from Lumentum; Lumentum to acquire Coherent in a $6.9B deal. Each share of Coherent common stock to be exchanged for $220 in cash and 0.61 of a share of Lumentum common stock.

 

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