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10 December 2018

Lumentum completes Oclaro acquisition

After receiving anti-trust clearance on 6 December from China’s State Administration for Market Regulation, optical and photonic optical component and subsystem maker Lumentum Holdings Inc of Milpitas, CA, USA has completed its acquisition (announced on 12 March) of Oclaro Inc of San Jose, CA, USA (which provides components, modules and subsystems for optical communications), terminating trading in Oclaro’s common stock on the NASDAQ Stock Market. Oclaro’s stockholders previously approved the merger on 11 July.

“The combined scale, resources, talent and breadth of technologies will help us accelerate innovation and the development of the products our customers and network operators around the world need to handle the tremendous and unrelenting growth in network bandwidth,” believes Lumentum’s president & CEO Alan Lowe.

For each share held, Oclaro stockholders will receive $5.60 in cash and 0.0636 of a share of Lumentum common stock. Lumentum and Oclaro have determined that it is likely that the transaction will be fully taxable to Oclaro stockholders for US federal income tax purposes, and therefore Lumentum will report the transaction as taxable.

“Completion of the transaction creates a powerful force in the optical industry and tremendous opportunity for employees, customers and shareholders,” comments Oclaro’s CEO Greg Dougherty.

Lumentum exoects to achieve an estimated $60m in synergies in the 12-24 months following closing of the transaction.

Lumentum financed the cash portion of the transaction with cash from the combined company balance sheets and $500m from a new term loan entered into in connection with the closing of the transaction.

Ian Small, a member of Oclaro’s board of directors, has joined Lumentum’s board, as per the terms of the merger agreement. Small is CEO of Evernote, a mobile and desktop personal productivity application company and was previously with Telefónica S.A., where he was its global chief data officer, and also served as chairman of the board of TokBox, a platform-as-a-service provider of embedded video communications.

See related items:

Lumentum’s acquisition of Oclaro receives anti-trust clearance from China

Oclaro stockholders approve takeover by Lumentum

Lumentum to acquire Oclaro for $1.8bn

Tags:  Optical communications

Visit:  www.lumentum.com

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