Lumentum surges on buy of Hong Kong's Cloud Light

TDK

30/10/2023 14:29

** Shares of Lumentum  LITE.O  up 11.9% at $40.37 after co
says to buy Hong Kong-based Cloud Light Technology
    ** LITE shares on course for biggest one-day pct gain since
Mar 2020
    ** Approx $750 mln acquisition of Cloud Light, which makes
fiber optic equipment and automotive sensors, expected to expand
LITE's opportunities in cloud data center and networking
infrastructure space
    ** Cloud Light, spun off from Japanese electronic components
manufacturer TDK  6762.T  in 2018, generated about $200 mln in
rev over the last year, LITE said
    ** LITE said transaction, expected to close by end-2023, to
be financed through cash on its balance sheet
    ** BofA Securities  BAC.N  is LITE's financial adviser
    ** With move on Mon, LITE shares down ~23% YTD vs Nasdaq's
 .IXIC  ~22% advance and ~4% gain in Nasdaq Telecommunication
index  .IXUT 

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))