II-VI Offers To Acquire Coherent For $260 Per Share

II-VI Incorporated (NASDAQ: IIVI) has made an offer to acquire Coherent, Inc. (NASDAQ: COHR) for a purchase price of $260 per share.
The purchase price signifies a premium of 15% to Coherent’s last closing price.
Under the offer, Coherent’s shareholders would receive $130.00 in cash and 1.3055 II-VI common shares for each Coherent share.
II-VI expects yearly acquisition synergies of $200 million in the next three years. It expects the transaction to be EPS accretive from the second year of closing. II-VI plans to fund the acquisition with cash on hand and J.P. Morgan Securities LLC’s debt financing.
Additionally, noted private investment firm Bain Capital is keen to invest in the combined company.
Yesterday, Lumentum Holdings Inc LITE disclosed that the MKS Instruments, Inc’s (NASDAQ: MKSI) offer to acquire Coherent could subject them to antitrust regulations, unlike the offer made by Lumentum. Further, Lumentum has agreed to sell its overlapping products with Coherent for China and stated that they have very few overlapping products. All of which rendered Lumentum’s offer as superior compared to MKS.

Earlier this week, MKS sent an unsolicited acquisition proposal to acquire Coherent, Inc. (NASDAQ: COHR) in exchange for $115 in cash per share of Coherent and 0.7473 shares of MKS subject to regulatory approvals and closing conditions.

Just a month back, Lumentum had inked an agreement to acquire Coherent in exchange for $100 in cash per share of Coherent and 1.1851 shares of Lumentum.

Price action: COHR shares are up 14.3% at $259.2 on the last check Friday.

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