Lumentum Announces Completion of Cloud Light Acquisition
08 November 2023 - 8:04AM
Business Wire
Lumentum Holdings Inc. (NASDAQ: LITE) (“Lumentum”) today
announced that it has completed its previously announced
acquisition of Cloud Light Technology Limited (“Cloud Light”).
“I am excited to add Cloud Light’s high-speed optical
transceiver products, differentiated technology, and talented team
to Lumentum,” said Alan Lowe, Lumentum President and CEO. “Cloud
operators have embraced this transaction, recognizing the enhanced
customer value proposition it brings through leading-edge
technology, a broader product portfolio, and strengthened supply
chain security, all at a time when Artificial Intelligence is
driving data center compute capacity to its limits.”
Under terms of the merger agreement, Lumentum acquired Cloud
Light with a transaction value of approximately $750 million,
before certain adjustments. The transaction consideration was paid
in cash from Lumentum’s balance sheet and the assumption and
substitution of outstanding unvested Cloud Light options.
The transaction is expected to be immediately accretive to
Lumentum’s non-GAAP earnings per share and is expected to more than
double Lumentum’s cloud data center infrastructure revenue in the
12-month period following the transaction close. The highly
complementary combination squarely positions Lumentum as a leader
in providing photonics to cloud operators, enabling more than a
five-fold expansion in the company’s served opportunity inside of
data centers. In the last twelve months, over 90 percent of Cloud
Light’s more than $200 million in revenue was derived from 400G and
higher speed products, and in their most recent quarter, over half
of Cloud Light’s optical transceiver revenue was derived from 800G
transceivers.
As previously announced, Lumentum will release its fiscal first
quarter 2024 financial results tomorrow, Wednesday, November 8,
2023, before the market opens and host a conference call the same
day at 5:30 a.m. PT/8:30 a.m. ET. During this call, Lumentum
management will also provide an update on the Cloud Light
transaction.
Advisors
BofA Securities served as the exclusive financial advisor to
Lumentum and Wilson Sonsini Goodrich & Rosati, Professional
Corporation, served as legal advisor. Morgan, Lewis & Bockius
LLP served as legal advisor to Cloud Light.
About Lumentum
Lumentum (NASDAQ: LITE) is a market-leading designer and
manufacturer of innovative optical and photonic products enabling
optical networking and laser applications worldwide. Lumentum
optical components and subsystems are part of virtually every type
of telecom, enterprise, and data center network. Lumentum lasers
enable advanced manufacturing techniques and diverse applications
including next-generation 3D sensing capabilities. Lumentum is
headquartered in San Jose, California with R&D, manufacturing,
and sales offices worldwide. For more information, visit
www.lumentum.com.
About Cloud Light
Cloud Light Technology Limited designs, markets, and
manufactures advanced optical modules for automotive sensors and
data center interconnect applications. The company’s core team has
over 18 years of experience in the design of advanced optical
modules, with a rich heritage in advanced manufacturing and
delivering superior quality and customer experience. Founded in
2018, Cloud Light is headquartered in Hong Kong, with R&D
centers in Hong Kong and Taiwan and state-of-the-art manufacturing
facilities in Dongguan, China and Southeast Asia. For more
information, visit www.cloudlight.com.hk.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally relate to future
events, including the timing of the proposed transaction and other
information related to the proposed transaction. In some cases, you
can identify forward-looking statements because they contain words
such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,”
“could,” “intends,” “target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,” “potential” or “continue” or
the negative of these words or other similar terms or expressions
that concern the proposed transaction and our expectations,
strategy, plans or intentions regarding it. Forward-looking
statements in this communication include, but are not limited to,
(i) expectations regarding the expected benefits of the proposed
transaction, (ii) expectations and beliefs with respect to
customers. the market that combined company will serve and its
market position, products and technologies of the combined company
and future operations, (iii) expectations regarding the industry in
which Lumentum operates and trends in such industry and related
technologies, and (iv) the expected impact of the acquisition on
Lumentum’s business and financial results. Expectations and beliefs
regarding these matters may not materialize, and actual results in
future periods are subject to risks and uncertainties that could
cause actual results to differ materially from those projected.
These risks include risks that the acquisition disrupts current
plans and operations; the risk of litigation and/or regulatory
actions related to the acquisition; changing supply and demand
conditions in the industry; and general market, political, economic
and business conditions. The forward-looking statements contained
in this communication are also subject to other risks and
uncertainties, including those more fully described in filings with
the Securities and Exchange Commission, including Lumentum’s Annual
Report on Form 10-K for the fiscal year ended July 1, 2023 as well
as other filings made Lumentum with the SEC from time to time and
available at www.sec.gov. These forward-looking statements are
based on Lumentum’s current expectations, beliefs, estimates and
projections and certain assumptions made by Lumentum, all of which
are subject to change.
Lumentum undertakes no obligation to update the information
contained in this communication or any other forward-looking
statement.
Category: Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20231107580882/en/
Investors: Kathy Ta, 408-750-3853,
investor.relations@lumentum.com Media: Noël Bilodeau,
408-439-2140, media@lumentum.com or Hotwire Global,
lumentum@hotwireglobal.com
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