Talk about being laser focused.
Coherent (COHR) - Get Report and Lumentum Holdings (LITE) - Get Report on Tuesday unveiled a deal where the two laser-focused manufacturing companies will combine in a cash-and-stock deal valued at $5.7 billion.
Under terms of the agreement, Coherent shareholders will receive $100 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own, the companies said in a statement. The transaction value represents a premium of 49% to Coherent's closing price on Friday.
Once finalized, Coherent stockholders are expected to own approximately 27% of the combined company, which fuses together two firms whose photonics and laser products are used in everything from laser eye surgery to chipmaking to OLED displays and 3D sensors to 5G networking capabilities.
Shares of Coherent soared on Tuesday after the deal was announced, gaining more than 30% in premarket trading. Coherent had a market value of $3.7 billion as of Friday's close, while Lumentum's was $8 billion.