Oclaro Inc (NASDAQ: OCLR) shares hiked in late afternoon trade on Monday. Lumentum Holdings Inc (NASDAQ: LITE) announced plans to acquire Oclaro for $9.99 per share in cash and stock.
The companies, both based in California, announced a definitive agreement, unanimously approved by the boards of directors of both companies, pursuant to which Lumentum will acquire all of the outstanding common stock of Oclaro.
For each share of Oclaro stock held, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock, subject to the terms of the definitive agreement.
Lumentum CEO Alan Lowe declared, "Joining forces with Oclaro strengthens our product portfolio, broadens our revenue mix, and positions us strongly for the future needs of our customers. Oclaro brings its leading Indium Phosphide laser and Photonic Integrated Circuit and coherent component and module capabilities to Lumentum.
"We are delighted to welcome the talented Oclaro team to Lumentum and look forward to a swift completion of the transaction with a focus on supporting our customers and delivering shareholder value."
Oclaro CEO Greg Dougherty said, "I am very pleased that two of the optical industry leaders, Oclaro and Lumentum, will join forces. Together, we will be an even stronger player in fiber optic components and modules for high-speed communications and a market leader in 3D sensing.”
Oclaro shares galloped $2.20, or 28%, to $10.05, while shares in Lumentum hiked $3.98, or 5.8%, to $72.95.
