Rofin-Sinar Technologies (RSTI) to Be Acquired by Rival Coherent Inc. for $942 Million
Shares of Rofin-Sinar Technologies Inc. (RSTI) were trading up +7.85 or +34.26 percent to $30.76 per share in Thursday’s premarket after news broke late yesterday that the company would be taken over by Coherent Inc. (COHR) for $32.50 per share. Rofin-Sinar shares closed at $22.91, off -0.03 or -0.13 percent in Wednesday’s regular trading session.
Plymouth, Michigan based Rofin-Sinar Technologies Inc. was originally founded in Hamburg, Germany in 1975 as SINAR Laser Systeme Verkaufsgesellschaft mbH.
Spun off from Spectra-Physics and converted to public ownership in 1970, Santa Clara, California based Coherent, Inc. is a major manufacturer and marketer of laser systems, optics laser measurement and control components and laser accessories. The company manufactures and sells CO2 lasers for cutting metal, as well as components for flat panel display screen manufacturing, integrated circuit packaging and inspection, materials processing and scientific research.
The announcement of the deal happened yesterday after the market close and caused a halt in afterhours trading in Rofin-Sinar shares. The $32.50 per share transaction price is a +42 premium to Rofin-Sinar’s closing price earlier on Wednesday.
The deal is intended to be funded by Coherent through a combination of cash on hand and fully committed debt financing by Barclays. The transaction is scheduled to close in the next six to nine months subject to regulatory approvals in the U.S. and abroad, Rofin-Sinar shareholders and other customary closing conditions.
Rofin-Sinar President and Chief Executive Officer Thomas Merk said in the joint press release that, “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. Our two companies share similar cultures and we are excited for our customers and employees to benefit from the greater resources and growth prospects that come from being part of a larger organization.”
The deal is expected to be accretive to earnings per share in the first full fiscal year following the close of the transaction. Coherent expects to realize about $30 million in annualized run rate synergies within 18 to 24 months of the transaction’s close. The synergies will be achieved through increased efficiency, optimizing the combined R&D folder and leveraging the scale of the two company’s businesses.
Coherent is being advised by Barclays and Wilson, Sonsini, Goodrich & Rosati PC are acting as legal advisors. Rofin-Sinar has Greenhill & Co. acting as financial advisors with Norton Rose Fullbright US LLP as its legal advisor.
Other News on RSTI
ROFIN Postpones 2016 Annual Meeting To Coincide With Special Meeting Relating To Proposed Transaction With Coherent
Company will announce the date of the combined annual and special meeting upon mailing of their proxy statement.
Vote For Change: SilverArrow Urges All Stockholders To Vote For All SilverArrow Nominees On The Green Proxy Card
Coherent’s takeover bid coincided with a major proxy battle at Rofin-Sinar.
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