Lumentum’s $5.7 Billion Combination With Coherent

Skadden, Arps, Slate, Meagher & Flom LLP advised Coherent, while Wilson Sonsini Goodrich & Rosati advised Lumentum on the deal.

Lumentum Holdings Inc. and Coherent, Inc. have entered into a definitive agreement under which Lumentum will acquire Coherent in a cash and stock transaction valued at $5.7 billion. Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Coherent stockholders will receive $100.00 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own. At closing, Coherent stockholders are expected to own approximately 27% percent of the combined company.

Lumentum intends to finance the cash consideration of the transaction through a combination of cash on hand from the combined company’s balance sheet and $2.1 billion in new debt financing from a fully committed Term Loan B.

Two members of the Coherent Board will be appointed to the Lumentum Board, which will be expanded to nine directors, at the closing of the transaction.

The transaction is expected to close in the second half of calendar year 2021, subject to approval by Lumentum’s and Coherent’s stockholders, receipt of regulatory approvals and other customary closing conditions.

Lumentum (NASDAQ: LITE) is a major designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide.

Founded in 1966, Coherent, Inc. (NASDAQ: COHR) is a global provider of lasers and laser-based technology for scientific, commercial and industrial customers.

Deutsche Bank served as the exclusive financial advisor and sole bookrunner on the committed debt financing to Lumentum. Bank of America served as exclusive financial advisor to Coherent.

The Skadden team included M&A partners Mike Ringler (Palo Alto; Picture) and Sonia Nijjar (Palo Alto), and counsel Christopher Bors (Palo Alto); Antitrust/Competition partner Steven Sunshine(Washington, D.C.) and counsel Joseph Rancour (Washington, D.C.); Banking partner Kristine Dunn (Los Angeles) and counsel Leila Sayegh (Los Angeles);   Executive Compensation and Benefits partner Joseph Yaffe (Palo Alto/Los Angeles) and counsel Page Griffin (New York); Intellectual Property and Technology partner Ken Kumayama (Palo Alto); Labor and Employment Law partner Karen Corman (Los Angeles) and counsel  Annie Villanueva (Palo Alto); and Tax partner Nathan Giesselman (Palo Alto).

The Wilson Sonsini team included Robert Ishii,
Rich Mullen, Brian Chan, Stephanie Chen, Eric Chang, Stephanie Chen, Lisa Stimmell, Julian Sarafian, John Mao, Dana Hall, David Hu, Jason Koo, Brandon Gantus, Michael Montfort, Jason Chan, Scott Sher, Jamillia Ferris, Brendan Coffman, Matthew McDonald, Myra Sutanto Shen, Sunny Dhaliwal, Barath Chari, Rosalind Schonwald, Sarah delos Santos, Matt Staples, Daniel Chen, Michael O’Brien, Matt Gorman, Alison Renner, Neil Gulyako, Mark Bass, Josephine Aiello LeBeau, Jeffrey Lehtman, Anne Seymour, Seth Cowell, James McCann, Martin Sul and Lee Cumberland.

Involved fees earner: Christopher Bors – Skadden Arps Slate Meager & Flom; Karen Corman – Skadden Arps Slate Meager & Flom; Kristine Dunn – Skadden Arps Slate Meager & Flom; Nathan Giesselman – Skadden Arps Slate Meager & Flom; Page Griffin – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom; Sonia Nijjar – Skadden Arps Slate Meager & Flom; Joseph Rancour – Skadden Arps Slate Meager & Flom; Mike Ringler – Skadden Arps Slate Meager & Flom; Leila Sayegh – Skadden Arps Slate Meager & Flom; Steven Sunshine – Skadden Arps Slate Meager & Flom; Annie Villanueva – Skadden Arps Slate Meager & Flom; Joseph Yaffe – Skadden Arps Slate Meager & Flom; Josephine Aiello LeBeau – Wilson Sonsini Goodrich & Rosati; Mark Bass – Wilson Sonsini Goodrich & Rosati; Brian Chan – Wilson Sonsini Goodrich & Rosati; Jason Chan – Wilson Sonsini Goodrich & Rosati; Barath Chari – Wilson Sonsini Goodrich & Rosati; Stephanie Chen – Wilson Sonsini Goodrich & Rosati; Daniel Chen – Wilson Sonsini Goodrich & Rosati; Brendan Coffman – Wilson Sonsini Goodrich & Rosati; Seth Cowell – Wilson Sonsini Goodrich & Rosati; Lee Cumberland – Wilson Sonsini Goodrich & Rosati; Sarah delos Santos – Wilson Sonsini Goodrich & Rosati; Sunny Dhaliwal – Wilson Sonsini Goodrich & Rosati; Jamillia Ferris – Wilson Sonsini Goodrich & Rosati; Brandon Gantus – Wilson Sonsini Goodrich & Rosati; Matthew Gorman – Wilson Sonsini Goodrich & Rosati; Neil Gulyako – Wilson Sonsini Goodrich & Rosati; Dana Hall – Wilson Sonsini Goodrich & Rosati; David Hu – Wilson Sonsini Goodrich & Rosati; Robert Ishii – Wilson Sonsini Goodrich & Rosati; Jason Koo – Wilson Sonsini Goodrich & Rosati; Jeffrey Lehtman – Wilson Sonsini Goodrich & Rosati; John Mao – Wilson Sonsini Goodrich & Rosati; James McCann – Wilson Sonsini Goodrich & Rosati; Matthew McDonald – Wilson Sonsini Goodrich & Rosati; Michael Montfort – Wilson Sonsini Goodrich & Rosati; Rich Mullen – Wilson Sonsini Goodrich & Rosati; Michael O’Brien – Wilson Sonsini Goodrich & Rosati; Alison Renner – Wilson Sonsini Goodrich & Rosati; Julian Sarafian – Wilson Sonsini Goodrich & Rosati; Rosalind Schonwald – Wilson Sonsini Goodrich & Rosati; Anne Seymour – Wilson Sonsini Goodrich & Rosati; Scott Sher – Wilson Sonsini Goodrich & Rosati; Matthew Staples – Wilson Sonsini Goodrich & Rosati; Lisa Stimmell – Wilson Sonsini Goodrich & Rosati; Martin Sul – Wilson Sonsini Goodrich & Rosati; Myra Sutanto Shen – Wilson Sonsini Goodrich & Rosati;

Law Firms: Skadden Arps Slate Meager & Flom; Wilson Sonsini Goodrich & Rosati;

Clients: Coherent; Lumentum Holdings Inc;

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Author: Ambrogio Visconti