Coherent Inc., a California-based laser tools and systems developer, has announced on Wednesday a definitive agreement with Rofin-Sinar Technologies Inc. Under the $942 million deal, Coherent will acquire the Michigan-based laser developing and manufacturing company.
Rofin-Sinar will get $32.50 a share which is a 41.9% premium to its closing price on Wednesday. Following the information of agreement, Rofin share prices have been witnessed to increase by 44% to $33 in the after market trading on Wednesday, according to a report published in Reuters.
The laser developer has postponed its annual meeting scheduled to take place on Thursday. Coherent intends to close the deal within six to nine months while eyeing to add earning per share during the first full year after closing. It also expects the deal to strengthen its position in materials processing while targeting $30 million annual savings within 18 to 24 months of closing, reports The Wall Street Journal.
Rofin has recorded net sales of $519.6 million in 2015. The company products include solid-state lasers, fiber lasers, diode lasers, extensive range of pulsed laser products, CO2 lasers and delivering solutions to a global customer base. The transaction is aligned with Rofin strategy on increasing its scale and pursuing accretive growth opportunities, reports StreetInsider quoting John Ambroseo, Coherent's President and Chief Executive Officer. Coherent's laser products are used for a wide range of applications which include defense, graphic arts, life sciences and materials processing. The California-based company has recorded a net sale of $802.5 million during the year ended on October 3. The CEO also adds that the combination of Coherent and Rofin represents a unique opportunity to strengthen Coherent's position in materials processing. He also expects that with the complimentary of Rofin, Coherent will represent itself as a global leader in laser and photonics-based technology. Coherent is also believed to create meaningful value for its stakeholders. However, Thomas Merk, Rofin President and CEO has referred both Coherent and Rofin as highly complementary in technological and geographical contexts. He also expresses intention for offering increased value to the customers through creating a better-positioned, highly diversified company. He has also expressed excitement for the customers and employees to benefit from the greater resources and growth prospects of a larger organization. Coherent is scheduled to host a conference call on Thursday to discuss the transaction at 2:00 PM Pacific (5:00 PM Eastern). A listen-only broadcast of the conference call may be accessed on the Company's website.
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