Lumentum acquires laser device maker Coherent for $5.7B

Laser and fiber optics company Lumentum Holdings said Tuesday it will acquire laser device maker Coherent in a deal worth $5.7 billion in cash and stock.

Lumentum is best known for its 3D facial recognition technology, and many analysts believe it’s the technology that powers Face ID, Animoji, and artistic imaging features in Apple products, and it will buy Coherent stock at 49% above its closing price on January 15, as it looks to invest more in the growing market for lasers and optical devices.

Coherent shareholders will receive $100 per share in cash and 1.1851 Lumentum common stock for each share, and are expected to own 27% of the resulting company, and the transaction is expected to close in the second half of 2021.

Lumentum shares are down 6% in premarket trading, while Coherent shares are up 0.33% in low volume trades, and both companies have reported preliminary quarterly results.

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