II-VI again tops Lumentum bid for Coherent
II-VI Inc. (NASDAQ:IIVI) has again topped Lumentum’s (NASDAQ:LITE) bid for Coherent Inc. (NASDAQ:COHR). The company filed a proposal March 11 in which it offers 195.00 in cash and 1.0 II-VI common share for each Coherent common share. The offer implies a total enterprise value of $6.8 billion. Coherent’s board has recognized the bid as a “Superior Company Proposal” and has informed Lumentum it has until 11:59 p.m. Pacific Time on March 17, 2021, to match or exceed the offer from II-VI.
Lumentum has acknowledge receipt of Coherent’s judgement but has not offered further comment.
The latest bid from II-VI’s includes $4.8 billion of fully committed debt financing from J.P. Morgan Securities LLC and a $1.5 billion equity investment from Bain Capital.
“II-VI has a demonstrated track record of successfully executing and integrating acquisitions of this scale, and together with Coherent, we would have the resources to continue to invest in a broad range of opportunities and deliver sustained growth for all shareholders,” said Dr. Vincent D. Mattera, Jr., CEO of II-VI. “We also believe in the complementary fit, not only of our technology platforms and business models, but also of our people and company cultures. Therefore, it is with great enthusiasm that I look forward to the prospect of the Coherent team joining us as we continue to share our passion for the endless ways in which photonics will continue to transform the world.”
Lumentum reached an agreement to buy Coherent in January (see “Lumentum to buy Coherent to expand laser and photonics reach”). However, MKS Instruments filed an unsolicited bid to unseat Lumentum (see “MKS Instruments files bid for Coherent in defiance of Lumentum sales agreement”), and II-VI topped both offers a short time later (see “Coherent board: Revised II-VI purchase proposal superior”). After a round of bids that included multiple enhanced offers from Lumentum, Coherent finally accepted one of these offers and announced last Wednesday, March 10, that the acquisition by Lumentum was back on (see "Coherent back in Lumentum’s corner"). However II-VI filed its new bid with Coherent the following day.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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