Coherent, Inc. (NASDAQ: COHR), a world leader in lasers and laser-based technology for scientific, commercial and industrial customers, agreed to acquire Rofin-Sinar Technologies, Inc. (NASDAQ: RSTI) for $32.50 per share in cash, in a transaction valued at $942 million.
Rofin is a leader in the development and manufacturing of lasers for laser-based industrial material processing applications. The company possesses a broad portfolio of innovative technologies and its product offerings include solid-state lasers, fiber lasers, diode lasers as well as an extensive range of pulsed laser products and CO2 lasers, delivering solutions to a global customer base. The company was founded in 1975 and is based in Plymouth, Mich.
“This transaction is aligned with our strategy of increasing our scale and pursuing accretive growth opportunities,” said John Ambroseo, Coherent’s president and CEO. “The combination of Coherent and Rofin represents a unique opportunity to strengthen Coherent’s position in materials processing. The addition of Rofin’s complementary portfolio will build on Coherent’s capabilities as a world leader in laser and photonics-based technology and solutions and create meaningful value for our stockholders.”
“We are delighted to announce this combination, which will deliver significant and immediate value for Rofin stockholders,” said Peter Wirth, chairman of Rofin.
“Coherent and Rofin are highly complementary both technologically and geographically. Together, we will significantly increase the value we can bring to our customers by creating a better-positioned, highly diversified company with a greater breadth of product offerings and innovation and a comprehensive technology portfolio,” said Thomas Merk, Rofin’s president and CEO.
The transaction is expected to be accretive to earnings per share in the first full year following the close. Coherent expects to realize approximately $30 million in annualized run rate synergies within 18 to 24 months post-closing, achieved through increased efficiencies, leveraging the scale of the combined businesses and optimizing the combined R&D portfolio. Additional synergies are expected through accelerated growth from combining the best capabilities from both companies with a presence in over 60 global markets.
Coherent intends to finance the transaction through a combination of cash on hand and fully committed debt financing from Barclays.
The transaction is expected to close within six to nine months, subject to approval by Rofin stockholders, regulatory approvals in the U.S. and other countries as well as other customary closing conditions.
Barclays is acting as financial advisor to Coherent and Wilson Sonsini Goodrich & Rosati PC is acting as legal advisor. Greenhill & Co., LLC is acting as financial advisor to ROFIN, and Norton Rose Fulbright US LLP is acting as legal advisor.
Coherent is one of the world’s leading providers of lasers and laser-based technology for scientific, commercial and industrial customers. Our common stock is listed on the Nasdaq Global Select Market and is part of the Russell 2000 and Standard & Poor’s SmallCap 600 Index. Coherent Inc. was founded in 1966 and is headquartered in Santa Clara, Calif.