San Jose based Lumentum (LITE) is to acquire Santa Clara based Coherent (COHR) in a deal valued at ~$5.7b, a 49% premium over Coherent’s closing price on 1/15/21. The deal will be financed with ~$1b in cash, $3.178b in Lumentm stock, and ~$2.1b in new debt. The Lumnentum board will expand, with two new members from Coherent, with the deal expected to close in 2H.
While Coherent is well-known for its early entry into the commercial laser market and provides a wide variety of laser types for many applications, one of the most well-known in the CE space is the use of Coherent’s laser annealing products to change the structure of a-Si (amorphous silicon) to a more desirable poly-silicon structure that is used to produce LTPS Thin-film electronics that drive the bulk of mobile displays, both LCD and OLED.
Lumentum is a broad-based supplier of optical products that range from optical interconnects to sensing components such as VCSELS and laser-based sensing components. The Coherent acquisition will broaden its sourcing and customer base and should be synergistic Both companies gave preliminary 4Q (calendar) quarter estimates when making the announcement, with LITE sales in line with consensus estimates and profits above, while Coherent’s preliminary estimates were both above consensus.
While Coherent is well-known for its early entry into the commercial laser market and provides a wide variety of laser types for many applications, one of the most well-known in the CE space is the use of Coherent’s laser annealing products to change the structure of a-Si (amorphous silicon) to a more desirable poly-silicon structure that is used to produce LTPS Thin-film electronics that drive the bulk of mobile displays, both LCD and OLED.
Lumentum is a broad-based supplier of optical products that range from optical interconnects to sensing components such as VCSELS and laser-based sensing components. The Coherent acquisition will broaden its sourcing and customer base and should be synergistic Both companies gave preliminary 4Q (calendar) quarter estimates when making the announcement, with LITE sales in line with consensus estimates and profits above, while Coherent’s preliminary estimates were both above consensus.
- Laser annealing for LTPS - Source: Industrial Laser Solutions
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