Lumentum Holdings will spend $5.7 billion in cash and stock to buy Coherent and expand its reach into lasers and photonics.
The San Jose, California, company said Tuesday that it would pay a 49% premium to the closing price of Coherent shares on Friday. The deal includes $100 in cash and slightly more than one share of Lumentum for each Coherent share.
Shares of Coherent jumped 34% after markets opened Tuesday, while Lumentum’s stock fell more than 10%.
Santa Clara, California-based Coherent Inc. provides lasers and laser-based technology for scientific, commercial and industrial uses.