Lumentum in advanced discussions to buy Laser Maker Coherent



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Lumentum Holdings Inc. is in advanced talks to buy laser maker Coherent Inc., according to people familiar with the matter, in a deal that would bring together two companies whose products are used in everything from eye surgery to laser to semiconductor manufacturing.

A cash and stock deal could be reached as early as this week, assuming the talks don’t collapse, people said. The exact terms could not be learned, but Coherent had a market value of $ 3.7 billion at Friday’s close, while Lumentum’s was $ 8 billion.

Coherent, based in Santa Clara, Calif., Manufactures lasers and related products used in medical and scientific equipment, industrial applications, and semiconductor manufacturing. It was founded in 1966.

Lumentum, based in Milpitas, California, primarily manufactures optical components used in cloud networks, data transmission, and underwater communications. It also has a laser segment with offerings used in sheet metal and printed circuit manufacturing. It became a stand-alone company in 2015 when it was separated from JDS Uniphase Corp.

Lumentum’s shares have risen by around 40% in the past year, while Coherent’s have fallen by around 10% in the same period, compared to the S&P 500’s 17% rise.

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