Shares of Oclaro Inc.
soared 23% in premarket trade Monday after the optical components company agreed to be acquired by Lumentum Holdings Inc.
in a deal valued at $1.8 billion. Under terms of the deal, Oclara shareholders will receive $5.0 in cash and 0.0636 Lumentum common shares, which based on Friday closing stock prices represent would value Oclara shares at $9.99 each, or a 27% premium. Oclaro’s stock hasn’t closed as high as at that level since July 26, 2017. The deal is expected to generate over $60 million in annual synergies within 12 months to 24 months of closing, which is expected to be in the second half of 2018. Lumentum said it plans to fund the deal with cash on hand from the combined company’s balance sheet and $550 million in debt financing. Oclara’s stock had lost 8.2% over the past 12 months through Friday, while Lumentum shares had soared 50.6% and the S&P 500
had gained 17.5%.
View more information: https://www.marketwatch.com/story/oclaros-stock-soars-after-lumentum-buyout-deal-valued-at-18-billion-2018-03-12