IIVI - Neophotonics pares some gains after rising on Coherent/Lumentum deal

Neophotonics (NPTN) could be the next takeout candidate in the industry after yesterday's agreement for Lumentum to buy Coherent.Neophotonics gained 9.7% yesterday (down 2.8% today) following the Coherent news and it rose 9.7% on Jan. 14 when Cisco (CSCO) agreed to a new deal with Acacia Communications (ACIA) at $115/share, up from original deal in July 2019 at $70/share. NPTN share gained 6.8% on July 9, 2019, when original Acacia deal was struck.Last week, Needham analyst Alex Henderson wrote that NeoPhotonics was the industry's most attractive remaining target after the company was "de-risked" with the removal of Huawei. He wrote that Lumentum and II-VI (IIVI) would likely be logical buyers for NPTN, buy not the only ones."We think these two companies are vying for scale. Neo is the last chip on the table,'' Henderson wrote.Henderson also noted other deals in the industry such as  the acquisitions of Oclaro, Luxtera, Finisar, Inphi, and several

For further details see:

Neophotonics pares some gains after rising on Coherent/Lumentum deal