Lumentum to Acquire Oclaro For $1.8 Billion

On March 12, 2018, Lumentum Holdings, a leading provider of photonics products for optical networking and lasers for industrial and consumer markets, announced that it has entered into a definitive agreement to purchase Oclaro, a leader in optical components and modules for the long-haul, metro, and data center markets, for $1.8 billion in cash and stock. Lumentum is a leading provider of photonic solutions for optical networking and lasers for the industrial and consumer markets. This acquisition adds Oclaro's strong portfolio of high-speed coherent and datacom solutions for optical communications.

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. The transaction values Oclaro at $9.99 per share or approximately $1.8 billion in equity value, based on the closing price of Lumentum's stock on March 9, 2018, of $68.98.

The transaction is expected to generate more than $60 million of annual run-rate synergies within 12 to 24 months of the closing and be immediately accretive to non-GAAP earnings per share.

The WSGR team advising Lumentum in the transaction includes:

Robert Ishii, Partner
Derek Liu, Partner
John Mao, Partner
Michael Occhiolini, Partner
Lisa Stimmell, Partner
Nathan Cao, Associate
Brianna Dougherty, Associate
Gordon Grafft, Associate
Dana Hall, Associate
Ben Hance, Associate
Alex Imas, Associate
Albert Parisi-Esteves, Associate
Michael Rosati, Associate
Jennifer Sayles Okron, Associate
Peter Wu, Associate

Technology Transactions:
Manja Sachet, Partner
John McGaraghan, Partner
Khurram Awan, Associate
Nayha Zubair, Associate

Jamillia Ferris, Partner
Christopher Williams, Of Counsel
Brendan Coffman, Associate

Employee Benefits & Compensation:
Brandon Gantus, Partner
David Thomas, Partner
Austin Holt, Associate

Employment Litigation:
JeAnne Reyes, Associate
Briza Sanchez, Associate

Eileen Marshall, Partner
Timothy Shapiro, Associate

Regulatory and Compliance:
Lawrence Perrone, Of Counsel
Anne Seymour, Associate

Real Estate:
James McCann, Partner
Martin Sul, Counsel
Lee Cumberland, Associate

Read Lumentum's press release for more information.