Lumentum Holdings Inc. is in advanced talks to buy laser manufacturer Coherent Inc., according to people familiar with the matter, in a business that would combine two companies whose products are used in everything from laser eye surgery to semiconductor manufacturing.
A cash and stock deal could come together immediately after this week, assuming the talks do not fall apart, people said. The exact terms could not be learned, but Coherent had a market value of $ 3.7 billion at the close on Friday, while Lumentum was $ 8 billion.
Consistent in Santa Clara, California, it produces lasers and related products used in medical and scientific equipment, industrial applications and semiconductor manufacturing. It was founded in 1966.
Lumentum, based in Milpitas, California, primarily produces optical components used in cloud, data transmission and underwater communications. It also has a segment of lasers with offers used in the manufacture of circuit boards and circuit boards. It became a stand-alone company in 2015, when it was derived from JDS Uniphase Corp.
Lumentum shares have risen about 40% in the last year, while Coherent has fallen about 10% over the same period, compared to a 17% increase in the S&P 500.