Lumentum Receives Notice of Termination of Coherent Merger Agreement
Lumentum Holdings Inc. announced the termination of its merger agreement with Coherent, Inc., which requires Coherent to pay a $217.6 million termination fee.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Lumentum Holdings Inc. announced the termination of its merger agreement with Coherent, Inc., which requires Coherent to pay a $217.6 million termination fee. Coherent's Board opted for an inferior offer from II-VI Incorporated, whose proposal was valued at $281.21, compared to Lumentum's superior bid worth $283.12. Lumentum's offer included $230 in cash and stock, while II-VI's consisted of $220 in cash and shares. The news emphasizes Lumentum's commitment to pursuing strategic acquisitions amid competitive offers.
Positive
- Termination of the merger allows Lumentum to seek better acquisition opportunities.
- Coherent's payment of a $217.6 million termination fee strengthens Lumentum's cash position.
Negative
- Loss of potential merger synergies and growth opportunities with Coherent.
- Market perception of Lumentum's competitive disadvantage in acquisition strategies.
Details
News Market Reaction – COHR
The recorded move for COHR in the trading session of this news was -0.05%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN JOSE, Calif., March 25, 2021 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum") today announced that Coherent, Inc. (NASDAQ: COHR) ("Coherent") has provided notice of termination of the previously announced amended definitive merger agreement with Lumentum entered into on March 9, 2021. Pursuant to the terms of the definitive merger agreement, Coherent is required to pay a
Lumentum noted Coherent's Board of Directors chose to accept an offer that is inferior in overall value and cash consideration. Using the closing prices as of March 24, 2021, Lumentum's offer had a value of
Lumentum's offer consisted of
Advisors
Deutsche Bank is serving as the exclusive financial advisor to Lumentum and Wilson Sonsini Goodrich & Rosati is serving as legal advisor.
About Lumentum
Lumentum (NASDAQ: LITE) is a major designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of telecom, enterprise, and data center network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation 3D sensing capabilities. Lumentum is headquartered in San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit www.lumentum.com.
Lumentum Contact Information
Investors: Jim Fanucchi, (408) 404-5400, investor.relations@lumentum.com
Media: Eric Brielmann or Kelly Sullivan, Joele Frank, Wilkinson Brimmer Katcher, (212) 355-4449
Category: Financial
View original content:http://www.prnewswire.com/news-releases/lumentum-receives-notice-of-termination-of-coherent-merger-agreement-301255629.html
SOURCE Lumentum Holdings Inc.
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