Sun.
Apr 11
2021
(Reuters) – Laser maker Coherent Inc on Thursday agreed to a $7 billion buyout offer from optical components maker II-VI Inc and scrapped a merger deal it signed with optical fiber firm Lumentum Holdings Inc weeks ago.
WHY IS COHERENT AN ATTRACTIVE BUY?
Coherent supplies laser-based equipment used in making organic light-emitting diode (OLED) displays, an increasingly popular choice for new-generation smartphones and high-end television sets.
A merger would help the companies expand their footing in a fast-growing market that is also set to benefit from 5G rollouts.
WHAT DO ITS BIDDERS DO?
Lumentum supplies 3D sensors used in Apple iPhone’s Face ID.
II-VI makes optical compounds used in solar cells, lasers and transistors.
One-time bidder MKS Instruments produces instruments used in semiconductor manufacturing processes.
Here is a timeline of all the bids and counter bids that Coherent has received since January 2021:
January 19: Lumentum and Coherent enter into cash-and-stock merger deal valued at $5.7 billion
February 8: Coherent says it received an unsolicited buyout offer worth $6 billion from MKS Instruments
February 11: Lumentum reiterates its deal to acquire Coherent as superior to MKS Instruments’ offer, which it believed would face substantial regulatory hurdles
February 12: Coherent says it received an unsolicited buyout proposal from II-VI valued at $6.4 billion
March 8: II-VI makes a revised proposal, with a higher cash component to acquire Coherent valued at $6.2 billion, which the company backs and deems superior to Lumentum’s offer
March 10: Coherent signs a revised merger agreement with Lumentum valued at $6.6 billion
March 12: II-VI makes a revised offer that is worth $6.64 billion, Coherent calls this offer superior to Lumentum’s offer from two days ago
March 17: Lumentum dives deeper and offers $6.9 billion, intensifying the takeover battle
March 18: II-VI comes back with a $7 billion offer, to counter Lumentum, which Coherent says it is in favor of
March 23: Lumentum proposes a deal valued at $7 billion with the highest cash component compared to all the bids made thus far
March 25: Coherent picks II-VI’s last offer and enters a new agreement, walking away from Lumentum’s March 9 agreement and agreeing to pay $217.6 million as a termination fee

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