Coherent to buy Rofin in deal valued at about $942 million

(Reuters) - Laser tools and systems maker Coherent Inc COHR.O said it would buy laser developer and manufacturer Rofin-Sinar Technologies Inc RSTI.O in a deal valued at about $942 million.

Coherent will buy Rofin for $32.50 per share in cash, a 41.9 percent premium to Rofin’s close on Wednesday.

Rofin’s shares were up 44 percent at $33 in after market trading.

Rofin, which has products including solid-state lasers, fiber lasers and diode lasers, reported net sales of $519.6 million in 2015.

The deal is expected to add to profit per share in the first full year following the close.

Coherent said it intended to finance the deal through a combination of cash on hand and fully committed debt financing from Barclays.

Barclays served as financial adviser to Coherent, while Greenhill & Co Llc advised Rofin. Coherent’s legal adviser was Sonsini Goodrich & Rosati PC and Norton Rose Fulbright US Llp served Rofin.

Reporting by Anya George Tharakan in Bengaluru; Editing by Shounak Dasgupta