Lumentum Holdings to Acquire Cloud Light for $750M, Doubling Its Cloud Infrastructure Revenue in Next Year

Hong Kong-based Cloud Light, maker of fiber optic equipment and automotive sensors, will enable Lumentum to expand their reach in the cloud data center and networking infrastructure space amid growing global demand for cloud computing solutions.

• Lumentum Holdings has agreed to acquire Hong Kong-based Cloud Light Technology for $750 million, a strategic investment that is expected to considerably expand the company's opportunities in the cloud data center and networking infrastructure space.
• The deal with Cloud Light, a producer of fiber optic equipment and automotive sensors, is projected to be immediately accretive to Lumentum's earnings per share and more than double its cloud intra-data center infrastructure revenue within 12 months after the close of the transaction.
• Cloud Light, which was spun off from Japanese electronics maker TDK in 2018, reportedly generated about $200 million in revenue over the last year.
• Lumentum plans to finance the acquisition through its existing cash balance, with payment to be made in cash along with the assumption and substitution of outstanding unvested Cloud Light options.
• The acquisition comes as companies like Amazon, Microsoft, and Google rush to adapt their vast data centers for an era where AI-backed services such as chatbots are drawing numerous users, highlighting the enduring demand for cloud-computing platforms across the sector.

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