8 November 2023
Lumentum completes acquisition of Cloud Light for $750m
Lumentum Holdings Inc of San Jose, CA, USA (which designs and makes optical and photonic products for optical networks and lasers for industrial and consumer markets) has completed its acquisition (announced at the end of October) of Cloud Light Technology Ltd of Hong Kong (which designs and makes optical transceiver modules for automotive sensors and data-center interconnect applications).
“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,” says Lumentum’s president & CEO Alan Lowe.
Cloud Light was acquired for about $750m (before certain adjustments), 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 to more than double the firm’s cloud data-center infrastructure revenue in the 12-month period following the transaction close. The complementary combination is reckoned to position Lumentum as a leader in providing photonics to cloud operators, enabling a more than five-fold expansion in the company’s served opportunity inside of data centers. In the last 12 months, over 90% of Cloud Light’s more than $200m 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.