Shares of laser maker Coherent jumped on Tuesday, after Lumentum Holdings agreed to acquire the company in a deal valued at $5.7 billion.
In a cash-and-stock deal, Coherent shareholders would receive $100 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own, according to the the companies’ statement. The transaction deal implies a 49% premium to Coherent's closing price on Friday. Coherent shareholders will own 27% of the combined entity, upon the deal’s closing.
The deal is expected to close in the second half of 2021.
The deal "unites Coherent's leading photonics and lasers businesses, including in the Microelectronics, Precision Manufacturing, Instrumentation, and Aerospace & Defense markets, with Lumentum's leading Telecom, Datacom, and 3D Sensing photonics businesses, creating a diversified photonics technology company with significantly increased scale and market reach," the companies said in a joint statement.
The deal is expected to boost earnings in the first year after closing and to create more than $150 million in annual run-rate synergies.
COHR's Aroon Indicator triggered a bullish signal on July 24, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 276 similar instances where the Aroon Indicator showed a similar pattern. In of the 276 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of laser diodes and other laser equipment
Industry ElectronicEquipmentInstruments