Lumentum raises takeover offer for Coherent to $6.9 billion

Industry:    2021-03-19

Coherent Inc said on Wednesday optical fiber firm Lumentum Holdings Inc had raised its offer for the company to $6.9 billion following a three-way takeover battle for the laser firm.

Under its new bid, Coherent shareholders will receive $220 in cash and 0.61 Lumentum shares for each share held.

Coherent agreed to a $5.7 billion deal with Lumentum in January, attracting other bidders looking to grow their share of a market set to benefit from the rising adoption of 5G and consumer electronics.

The Wall Street Journal reported late on Wednesday that optical components maker II-VI Inc submitted a new takeover offer for Coherent worth roughly $7 billion, or around $285 a share.

Last month, MKS Instruments offered $6 billion, followed by a $6.4 billion bid by II-VI.

Ever since, Lumentum and II-VI have engaged in a bidding war, making at least two counteroffers each by sweetening the cash component.

Lumentum also said private-equity firm Silver Lake would make a $1 billion equity investment in the combined company.

II-VI did not immediately respond to a request for comment.

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