Stephen Simpson, CFA • 33 Comments
Stephen Simpson, CFA
Wed, Mar. 16, 4:54 PM
- Coherent (NASDAQ:COHR) is acquiring industrial laser peer Rofin-Sinar (NASDAQ:RSTI) for $942M, or $32.50/share, in cash. The price represents a 42% premium to Rofin's Wednesday close.
- The deal is expected to close in 6-9 months, provided shareholders and regulators approve. For reference, Coherent closed today with a $2.06B market cap.
- Coherent plans to finance the purchase via existing cash and committed debt financing from Barclays. CEO John Ambroseo: "The combination of Coherent and ROFIN represents a unique opportunity to strengthen Coherent's position in materials processing. The addition of ROFIN's complementary portfolio will build on Coherent's capabilities as a world leader in laser and photonics-based technology and solutions and create meaningful value for our stockholders." Rofin CEO Thomas Merk declares the two companies to be "highly complementary both technologically and geographically."
- The deal is expected to be accretive to EPS in its first full year after closing, and produce $30M/year in synergies within 18-24 months of closing. It could stoke M&A hopes for peers IPG Photonics (NASDAQ:IPGP), Newport (NASDAQ:NEWP), and GSI Group (NASDAQ:GSIG).
- COHR and RSTI appear to be halted. CC at 5PM ET (webcast).
- Update (5:43PM ET): After coming off a halt, Rofin-Sinar is up 44% after hours to $33.00. The price suggests some investors are betting on a higher bid.
Mar. 13, 2013, 4:54 PM
IPG Photonics (IPGP) acquires Mobius Photonics, a developer of UV fiber lasers for use in micromaching, drilling, and solar panel processing apps, for an undisclosed sum. IPG asserts the UV laser market could be a "significant sales driver" in the coming years, and notes Mobius owns a broad patent that covers the use of pulsed fiber lasers to create UV light.| Mar. 13, 2013, 4:54 PM