Lumentum’s $1.8 Million acquisition of Oclaro


Deutsche Bank Securities served as the exclusive financial advisor to Lumentum and Wilson Sonsini Goodrich & Rosati served as legal advisor. Jefferies LLC served as exclusive financial advisor to Oclaro and Jones Day served as legal advisor.

Lumentum Holdings Inc., a leading provider of photonics products for optical networking and lasers for industrial and consumer markets, and Oclaro, Inc., a leader in optical components and modules for the long-haul, metro, and data center markets, have signed a definitive agreement, unanimously approved by the boards of directors of both companies, pursuant to which Lumentum will acquire all of the outstanding common stock of Oclaro. For each share of Oclaro stock held, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock, subject to the terms of the definitive agreement. The transaction values Oclaro at $9.99 per share or approximately $1.8 billion in equity value, based on the closing price of Lumentum’s stock on March 9, 2018, of $68.98. The transaction value represents a premium of 27% to Oclaro’s closing price on March 9, 2018 and a premium of 40% to Oclaro’s 30 day average closing price. Oclaro stockholders are expected to own approximately 16% of the combined company at closing.

The transaction is expected to generate more than $60 million of annual run-rate synergies within 12 to 24 months of the closing and be immediately accretive to non-GAAP earnings per share.

Lumentum intends to fund the cash consideration with a combination of cash on hand from the combined companies’ balance sheets and $550 million in debt financing. The transaction is expected to close in the second half of calendar 2018, subject to approval by Oclaro’s stockholders, antitrust regulatory approval in the US and China, and other customary closing conditions.

WSGR advised Lumentum with Robert Ishii (Picture), Derek Liu, John Mao, Michael Occhiolini, Lisa Stimmell, Nathan Cao, Brianna Dougherty, Gordon Grafft, Dana Hall, Ben Hance, Alex Imas, Albert Parisi-Esteves, Michael Rosati, Jennifer Sayles Okron, Peter Wu (M&A), Manja Sachet, John McGaraghan, Khurram Awan, Nayha Zubair (IP&IT), Jamillia Ferris, Christopher Williams, Brendan Coffman (Antitrust), Brandon Gantus, David Thomas, Austin Holt, JeAnne Reyes, Briza Sanchez (Employment – Benefits & Compensation), Eileen Marshall, Timothy Shapiro (Tax), Lawrence Perrone,

Anne Seymour (Compliance), James McCann, Martin Sul and

Lee Cumberland (Real Estate).

Jones Day is advising Oclaro, Inc. with a team led by Daniel R. Mitz and Kevin B. Espinola.

Involved fees earner: Robert Ishii – Wilson Sonsini Goodrich & Rosati; Derek Liu – Wilson Sonsini Goodrich & Rosati; John Mao – Wilson Sonsini Goodrich & Rosati; Michael Occhiolini – Wilson Sonsini Goodrich & Rosati; Lisa Stimmell – Wilson Sonsini Goodrich & Rosati; Nathan Cao – Wilson Sonsini Goodrich & Rosati; Brianna Dougherty – Wilson Sonsini Goodrich & Rosati; Gordon Grafft – Wilson Sonsini Goodrich & Rosati; Ben Hance – Wilson Sonsini Goodrich & Rosati; Aleksandr Imas – Wilson Sonsini Goodrich & Rosati; Albert Parisi-Esteves – Wilson Sonsini Goodrich & Rosati; Michael Rosati – Wilson Sonsini Goodrich & Rosati; Jennifer Sayles Okorn – Wilson Sonsini Goodrich & Rosati; Manja Sachet – Wilson Sonsini Goodrich & Rosati; John McGaraghan – Wilson Sonsini Goodrich & Rosati; Khurram Awan – Wilson Sonsini Goodrich & Rosati; Nayha Zubair – Wilson Sonsini Goodrich & Rosati; Jamillia Ferris – Wilson Sonsini Goodrich & Rosati; Christopher Williams – Wilson Sonsini Goodrich & Rosati; Brendan Coffman – Wilson Sonsini Goodrich & Rosati; Brandon Gantus – Wilson Sonsini Goodrich & Rosati; David Thomas – Wilson Sonsini Goodrich & Rosati; Austin Holt – Wilson Sonsini Goodrich & Rosati; JeAnne Reyes – Wilson Sonsini Goodrich & Rosati; Briza Sanchez – Wilson Sonsini Goodrich & Rosati; Eileen Marshall – Wilson Sonsini Goodrich & Rosati; Timothy Shapiro – Wilson Sonsini Goodrich & Rosati; Lawrence Perrone – Wilson Sonsini Goodrich & Rosati; Anne Seymour – Wilson Sonsini Goodrich & Rosati; James McCann – Wilson Sonsini Goodrich & Rosati; Martin Sul – Wilson Sonsini Goodrich & Rosati; Lee Cumberland – Wilson Sonsini Goodrich & Rosati; Daniel Mitz – Jones Day; Kevin Espinola – Jones Day;

Law Firms: Wilson Sonsini Goodrich & Rosati; Jones Day;

Clients: Oclaro, Inc.; Lumentum Holdings Inc;

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Author: Ambrogio Visconti