Lumentum closes NeoPhotonics acquisition

Aug. 4, 2022

Having finally received deal approval from Chinese regulators earlier this week, Lumentum Holdings Inc. reveals it has completed its acquisition of fellow optical components and technology developer NeoPhotonics Corp.

Stephen Hardy

Having finally received deal approval from Chinese regulators earlier this week, Lumentum Holdings Inc. (NASDAQ: LITE) reveals it has completed its acquisition of fellow optical components and technology developer NeoPhotonics Corp. NeoPhotonics shareholders will receive $16.00 per NeoPhotonics share in cash. The terms set NeoPhotonics’ total equity value at approximately $918 million.

Lumentum announced the merger agreement last November (see “Lumentum to buy NeoPhotonics for high-speed optics, ‘new markets’”). At the time, the company said it expected the deal to close in the second half of this year. While approval from the People's Republic of China's State Administration for Market Regulation (SAMR) has proven an impediment to on-time deal closings in the past (see, for example, “II-VI to refile Finisar purchase approval request with Chinese authority”), acceptance of this deal went relatively smoothly.

"I am excited to unite NeoPhotonics' differentiated products and technology and talented team with those of Lumentum," said Alan Lowe, Lumentum’s president and CEO. "This acquisition better positions us for attractive growth opportunities created by the digital transformation of work and life, which is driving relentless growth in the needed volumes and performance of cloud and network infrastructure. I welcome our new colleagues to the Lumentum team and want to thank NeoPhotonics' CEO Tim Jenks and the rest of NeoPhotonics' leadership team for their contributions in getting us to this important milestone."

Lumentum continues to believe it can find approximately $50 million in annual run-rate synergies within 24 months. The acquisition will not affect Lumentum’s fiscal 2022 fourth quarter. Cash for the deal is coming from the combined companies' balance sheets.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.