1 July 2022
II-VI completes acquisition of Coherent
Engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has completed its acquisition of Coherent Inc of Santa Clara, CA (which provides lasers and laser-based technology for scientific, commercial and industrial applications).
Under the terms of the merger agreement, each share of Coherent common stock was converted into the right to receive $220 in cash and 0.91 of a share of II-VI common stock.
II-VI will continue to be led by a leadership team that leverages the strengths of the combined company and a board of directors consisting of executives and thought leaders from highly diverse industries. Former Coherent directors Stephen A. Skaggs and Sandeep S. Vij join the board.
“Coherent is an innovator with a rich portfolio of some of the most advanced technologies in the world, which have been transformative in a broad range of markets,” comments II-VI’s chair & CEO Dr Vincent D. Mattera Jr. “I would like to thank Andy Mattes for his leadership of Coherent and enabling a very successful integration planning process,” he adds.
The combined business will be more distributed across the value chain from materials to components, subsystems, systems and service. II-VI reckons that its scale — at the levels of the value chain where expertise in materials matters — is complementary to Coherent’s scale where laser systems play. The aim is to leverage that complementary scale in ways that matter to customers in strategic markets.
With a global workforce of over 28,000 associates in 130 locations, the combined firm will serve the four markets of industrial, communications, electronics, and instrumentation, which together represent a fast-growing total addressable market of $65bn.
The combined company will be organized into three business segments. Dr Giovanni Barbarossa will continue to serve as chief strategy officer and lead the Materials Segment (previously the Compound Semiconductors Segment). Sunny Sun will continue to lead the Networking Segment (previously the Photonic Solutions Segment). Former Coherent chief operating officer & executive VP Dr Mark Sobey will be president of the new Lasers Segment.
“We plan for the combined company to be named Coherent [trading under the ticker symbol ‘COHR’ on the Nasdaq stock market]. We will soon announce the date of the launch of our new brand identity,” says Mattera. “While the name Coherent has a strong association with lasers, the broader meaning of the word is ‘bringing things together.’ It represents our diversity in thinking distilled into our clarity of purpose, our unity in action, and our broader sense of engagement by connection to our mission, vision, and values,” he adds.
“With our foundation in materials and our unstoppable imagination, we will enable the next evolution of the cloud, 3D sensing, electric vehicles, additive manufacturing, the commercialization of space, and the personalization of healthcare, just to name a few,” Mattera continues. “We are together on a journey towards a future that will be increasingly mobile, intelligent and electric, accelerating the pace of innovation.”