Press release
Lumentum To Acquire NeoPhotonics to Accelerate Optical Network Speed And Scalability
- Combination accelerates Lumentum's penetration of the fast-growing opportunity for high-speed optical components for cloud and telecom network
About this update from Lumentum Holdings Inc.
[{"type":"text","content":"- Combination accelerates Lumentum's penetration of the fast-growing opportunity for high-speed optical components for cloud and telecom network infrastructure and creates a better partner for customers globally\n - Expected to be immediately accretive to non-GAAP earnings per share and deliver more than $50 million in annual run-rate cost synergies within 24 months of transaction close\n - Companies to host investor call today at 5:30 a.m. PT to discuss the transaction\n - Separately, Lumentum and NeoPhotonics announce quarterly financial results\n\n\nSAN JOSE, Calif., Nov. 4, 2021 /PRNewswire/ -- Lumentum Holdings Inc. (NASDAQ: LITE) (\"Lumentum\") and NeoPhotonics Corporation (NYSE: NPTN) (\"NeoPhotonics\") today announced that they have entered into a definitive agreement under which Lumentum will acquire NeoPhotonics for $16.00 per share in cash, which represents a total equity value of approximately $918 million. The transaction has been unanimously approved by the Boards of Directors of both companies. \nThe addition of NeoPhotonics expands Lumentum's opportunity in some of the fastest growing areas of the more than $10 billion market for optical components used in cloud and telecom network infrastructure. The integrated company will be better positioned to serve the needs of a global customer base who are increasingly utilizing photonics to accelerate the shift to digital and virtual approaches to work and life, the proliferation of IoT, 5G, and next-generation mobile networks, and the transition to advanced cloud computing architectures. The combination creates a stronger partner for customers, with the ability and intent to invest strongly in innovation and manufacturing capacity. \n\"With NeoPhotonics, we're making another important investment in better serving our customers and expanding our photonics capabilities at a time when photonics are at the forefront of favorable long-term market trends,\" said Alan Lowe, Lumentum President and CEO. \"At the center of our strategy is a relentless focus on developing a differentiated portfolio with the most innovative products and technology in our industry so that we can help our customers compete and win in their respective markets. Adding NeoPhotonics' differentiated products and technology and innovative R&D team is consistent with this strategy and together, we will bett...