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Lumentum To Acquire Oclaro For $1.8 Billion

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Two optical industry leaders to join forces

Lumentum has announced that it intends to acquire Oclaro. The $1.8 billion price tag will bring Oclaro's InP laser, PIC and coherent component and module capabilities into the Lumentum product portfolio.

"Joining forces with Oclaro strengthens our product portfolio, broadens our revenue mix, and positions us strongly for the future needs of our customers," said Alan Lowe, Lumentum's oresident and CEO.

"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 fibre optic components and modules for high-speed communications and a market leader in 3D sensing. This is a fantastic combination for all of our stakeholders, including stockholders, employees, customers and partners," said Greg Dougherty, Oclaro's CEO

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.

Lumentum intends to fund the cash consideration with a combination of cash on hand from the combined companies' balance sheets and $550 million in debt financing.

The transaction is expected to close in the second half of calendar 2018, subject to approval by Oclaro's stockholders, antitrust regulatory approval in the US and China, and other customary closing conditions.

One member of Oclaro's Board of Directors, as mutually determined, will join Lumentum's board of directors upon the closing of the transaction.

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