Laser and optical fiber developer Lumentum will acquire NeoPhotonics, the San Jose, Calif.-based developer of silicon photonics and advanced hybrid PIC-based lasers, modules, and subsystems. Lumentum will make the acquisition for $16 per share in cash, representing an equity value of $918 million. Lumentum, which lost out on its bid to acquire Coherent earlier this year following multiple purchase agreements with the laser and laser components developer and manufacturer, will use the NeoPhotonics acquisition to accelerate its penetration into opportunities in high-speed optical components for cloud and telecom infrastructure — a more than $10 billion market. Both companies announced their quarterly financial results independently Nov. 4, with NeoPhotonics announcing that its products capable of use for 400G and above applications were 50% of its reported revenue. “With NeoPhotonics, we’re making another important investment in better serving our customers and expanding our photonics capabilities at a time when photonics are at the forefront of favorable long-term market trends,” said Alan Lowe, Lumentum president and CEO. “The increasing global demand for our ultrapure light tunable lasers and photonics technologies for speed over distance applications is more apparent than ever, and Lumentum is the ideal partner to serve our customers on a larger scale,” said Tim Jenks, NeoPhotonics president, CEO, and chairman. “Lumentum recognizes the importance of NeoPhotonics’ differentiated photonic technology and products, which are well positioned for accelerated growth in the coming years.” The transaction purchase price represents a premium of approximately 39% to NeoPhotonics’ closing price on Nov. 3, the day before the announcement of the transaction. The deal is expected to close in the second half of calendar year 2022, subject to approvals.