Lumentum To Acquire Cloud Light

(RTTNews) - Lumentum Holdings Inc. (LITE) announced on Monday that it will acquire Cloud Light Technology Limited for a transaction value of approximately $750 million.

This acquisition is expected to accelerate Lumentum's penetration into the fastest-growing segments of the multibillion-dollar opportunity for optical modules utilized in cloud computing data center infrastructure.

The acquisition of Cloud Light is highly complementary and puts Lumentum in a leading position to provide photonics to cloud operators, which can expand the company's served opportunity inside data centers by over five times.

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 months following the transaction close.

The closure of this transaction is expected by the end of calendar 2023.