Friday, December 7, 2018

Lumentum - Oclaro deal expected to close Dec 10

Lumentum confirmed that it has obtained antitrust clearance from the People's Republic of China's State Administration for Market Regulation concerning its pending acquisition of Oclaro.

Lumentum expects that the Oclaro acquisition will close on or around December 10, 2018.

Lumentum to acquire Oclaro for $1.8 billion

Lumentum agreed to acquire Oclaro for approximately $1.8 billion in cash and stock.

Under the deal, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock for each share of Oclaro stock, representing a premium of 27% to Oclaro's closing price on March 9, 2018 and a premium of 40% to Oclaro's 30 day average closing price.  Oclaro stockholders are expected to own approximately 16% of the combined company at closing.

The combined company is expected to have annual revenue of $1.733 billion and an operating margin of 19%, prior to synergies from the combination.

Lumentum, which is based in Milpitas, California, supplies a range of optical components and subsystems for telecom, enterprise, and data center networking equipment. The company was created in 2015 as a split off from JDSU.

Oclaro supplies optical components and modules for the long-haul, metro and data center markets. The company is based in San Jose, California.

"Joining forces with Oclaro strengthens our product portfolio, broadens our revenue mix, and positions us strongly for the future needs of our customers.  Oclaro brings its leading Indium Phosphide laser and Photonic Integrated Circuit and coherent component and module capabilities to Lumentum.  The combined company will drive innovation faster and accelerate the development of products to enable our customers to win," said Alan Lowe, Lumentum's President and CEO.  "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."

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