Why Lumentum Stock Plummeted While Coherent Stock Skyrocketed Today
Shares of Lumentum (NASDAQ: LITE) have plummeted while shares of Coherent (NASDAQ: COHR) have skyrocketed today after the companies announced that Lumentum would acquire Coherent. Lumentum also announced preliminary results for its fiscal second quarter of 2021. As of 12:30 p.m. EST, Lumentum stock was down 11% while coherent stock was up 32%.
Lumentum has agreed to purchase Lumentum for $100 per share in cash and 1.1851 shares of Lumentum stock in a $5.7 billion transaction. Both companies specialize in laser technology and photonics, and the merger is expected to produce over $150 million in annual run-rate synergies within two years of closing. The deal should be accretive to adjusted earnings per share during the first full year after closing. Lumentum will fund the cash portion of the deal with cash on hand as well as $2.1 billion in new debt.
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Source Fool.com
