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.

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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