Coherent board accepts II-VI acquisition proposal and terminates Lumentum merger

Mar. 25, 2021 6:05 AM ETCoherent Corp. (COHR), LITECOHR, LITEBy: Niloofer Shaikh, SA News Editor23 Comments
  • After evaluating the comparative benefits and risks of the II-VI (NASDAQ:IIVI) and Lumentum (NASDAQ:LITE) proposals, including the near-term and long-term financial opportunities and risks presented by each proposal, the potential synergies available through a combination with each company, and the complementary businesses of each company, Coherent (NASDAQ:COHR) agreed to cash and stock deal from II-VI.
  • As per the merger agreement with II-VI, each share of Coherent common stock will be exchanged for $220 in cash and 0.91 of a share of II-VI common stock at the completion of the transaction.
  • The transaction is expected to close in 4Q21.
  • The company is terminating the March 9, 2021 merger agreement with Lumentum and will pay $217.6M termination fee contemplated by their merger agreement in order to enter into a new merger agreement with II-VI.
  • Earlier this week, Lumentum revised its bid to come to $230/share in cash and 0.6724 shares of Lumentum common stock.
  • As per closing prices of March 24, 2021, Lumentum's offer had a value of $283.12 while the value of II–VI offer was $281.21.
  • IIVI shares down 7.8% and LITE shares up 6.33% premarket.

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