Lumentum to acquire Oclaro for USD 1.8 billion

Tuesday 13 March 2018 | 18:37 CET | News

Lumentum has agreed to buy Oclaro for USD 1.8 billion in order to expand in the fibre-optic components market. The offer of USD 9.99 per share is a 40 percent premium to Oclaro's average share price in the past month. 

Oclaro shareholders will receive USD 5.60 in cash and 0.0636 of a share of Lumentum common stock for each of their shares. This will give them around 16 percent of Lumentum after the deal and one seat on the board of directors. 

Lumentum said the takeover will strengthen its product portfolio, broaden its revenue mix and help it better serve customers going forward. In particular, Oclaro brings its leading Indium Phosphide laser and Photonic Integrated Circuit and coherent component and module capabilities to Lumentum.  

The merger is expected to generate more than USD 60 million in annual synergies within 12 to 24 months of closing and immediately add to Lumentum's adjusted earnings. Lumentum will fund the deal with a combination of cash on hand at both companies and USD 550 million in debt financing. The takeover is expected to close in the second half of 2018, subject to approval by Oclaro's stockholders and antitrust regulatory approval in the US and China.

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