Lumentum Holdings and Oclaro have reached an agreement, on which the former will acquire all of the outstanding common stock of the latter.
For each share of Oclaro stock held, The holder will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock, subject to the terms. The transaction values Oclaro at $9.99per share or approximately $1.8 billion in equity value, based on the closing price of Lumentum's stock on 9 March 2018.
Lumentum will fund the cash consideration with a combination of cash on hand from the combined companies' balance sheets and $550 million in debt financing.
Greg Dougherty, CEO at Oclaro commented: 'I am very pleased that two of the optical industry leaders, Oclaro and Lumentum, will join forces. Together, we will be an even stronger player in fiber optic components and modules for high-speed communications and a market leader in 3D sensing. I am extremely proud of what the Oclaro team has accomplished over the last five years. We have enjoyed tremendous success and this combination will create even more exciting opportunities for the team.'
Alan Lowe, president and CEO at Lumentum added: 'Joining forces with Oclarostrengthens our product portfolio, broadens our revenue mix, and positions us strongly for the future needs of our customers. We are delighted to welcome the talented Oclaro team to Lumentum and look forward to a swift completion of the transaction with a focus on supporting our customers and delivering shareholder value.'
The transaction is expected to close in the second half of calendar 2018, subject to approval by Oclaro's stockholders, antitrust regulatory approval in the US and China, and other customary closing conditions.
