Coherent Corp Stock Price, News & Analysis

Coherent, Inc. (NASDAQ: COHR) has received a new acquisition proposal from Lumentum Holdings Inc. (NASDAQ: LITE). The offer includes $220.00 in cash and 0.61 shares of Lumentum stock for each share of Coherent. This proposal, needing stockholder and regulatory approvals, comes after Coherent's board considered a previous offer from II-VI valued at $195.00 in cash and 1.0 share of II-VI stock. Coherent's board will review Lumentum's proposal against II-VI's to determine the best course of action for shareholders.

Lumentum Holdings Inc. announced that Coherent's Board deemed an unsolicited acquisition proposal from II-VI Incorporated as a 'Company Superior Proposal' under a prior merger agreement. Coherent intends to terminate its agreement with Lumentum, which was established on March 9, 2021. Lumentum has until March 17, 2021, to amend the transaction agreement. If Coherent proceeds with II-VI, it must pay a termination fee of $217.6 million to Lumentum. The Lumentum Board continues to recommend the merger with Coherent to its shareholders.

Coherent, Inc. (NASDAQ: COHR) announced on March 12, 2021, that its board has determined a revised acquisition proposal from II-VI Incorporated (NASDAQ: IIVI), received on March 11, to be a 'Company Superior Proposal.' This proposal offers $195.00 in cash and one share of II-VI common stock for each share of Coherent. Consequently, Coherent intends to terminate its current merger agreement with Lumentum Holdings Inc. (NASDAQ: LITE) unless Lumentum presents a more favorable proposal by March 17, 2021. Financial and legal advisors involved include Bank of America and Credit Suisse.

Coherent, Inc. (NASDAQ: COHR) announced a revised merger agreement with Lumentum Holdings Inc. (NASDAQ: LITE) on March 10, 2021. The agreement states that each share of Coherent common stock will be exchanged for $175.00 in cash and 1.0109 shares of Lumentum stock at closing. The deal requires approval from both companies' stockholders and regulatory approvals in China and South Korea. Coherent's board recommends shareholders vote in favor of the merger, expected to close in the second half of 2021.

Lumentum Holdings Inc. received notice from Coherent, Inc. regarding an unsolicited acquisition proposal from II-VI Incorporated, which Coherent's Board deemed a "Company Superior Proposal" under its existing merger agreement with Lumentum. Coherent intends to terminate the merger agreement, requiring a $217.6 million termination fee if it proceeds with II-VI. Lumentum will review the proposal, having four business days to respond. Despite this, Lumentum's Board continues to recommend the merger with Coherent to its stockholders.

Lumentum Holdings has issued a statement regarding MKS Instruments' unsolicited acquisition proposal for Coherent, asserting that the proposal is misleading and fraught with regulatory risks. Lumentum emphasizes that its agreed merger with Coherent provides a more secure path to completion, promising to tackle antitrust regulations effectively. MKS's proposal lacks necessary commitments to mitigate significant overlaps, which could lead to value loss for Coherent shareholders. The definitive agreement between Lumentum and Coherent includes a $100.00 cash payment and 1.1851 Lumentum shares per Coherent share, anticipated to finalize in the latter half of 2021.

Coherent, Inc. (NASDAQ: COHR) reported Q1 fiscal 2021 financial results with net sales of $326.1 million and a GAAP net income of $0.1 million ($0.01 per diluted share), down significantly from $5.8 million a year ago. Non-GAAP net income was $26.7 million ($1.09 per diluted share), an increase from $20.7 million last year. Although net sales slightly grew from $316.8 million in Q4 2020, the year-over-year GAAP income decline raises concerns. Strong bookings and improved margins were noted, particularly in microelectronics and aerospace sectors.

Coherent, Inc. (NASDAQ: COHR) announced it received an unsolicited acquisition proposal from MKS Instruments, Inc. (NASDAQ: MKSI) offering $115 in cash and 0.7473 of an MKS share per Coherent share. This proposal is subject to closing conditions such as antitrust approvals. On January 19, Coherent entered a merger agreement with Lumentum Holdings Inc. (NASDAQ: LITE), offering $100 in cash and 1.1851 Lumentum shares per Coherent share. Coherent's board is evaluating the MKS proposal, recognizing it could be superior to Lumentum's offer but continues to recommend the Lumentum merger to shareholders.

Coherent (NASDAQ: COHR) announced its preliminary financial results for the fiscal first quarter ended January 2, 2021. The company reported revenue between $325 million and $327 million, with a GAAP gross profit of $119 million to $120.5 million, and a GAAP operating income ranging from $16.4 million to $17.6 million. Non-GAAP figures showed a gross profit of $128.1 million to $130 million and an operating income between $36.1 million and $37.9 million. Investors are advised to approach these preliminary estimates with caution.