Subsequent Event

3 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Event

Note 17. Subsequent Event

On October 30, 2023, Lumentum and Cloud Light Technology Limited (“Cloud Light”) announced a definitive merger agreement (the “Merger Agreement”), On November 7, 2023 (the “Closing date”), we completed the acquisition of Cloud Light. The acquisition will enable us to be well-positioned to serve the growing needs of cloud and networking customers, particularly those focused on optimizing their data center infrastructure for the demands of AI/ML. The total transaction value is approximately $750.0 million, subject to certain customary adjustments as specified in the Merger Agreement. We paid cash consideration of $706.6 million to shareholders of Cloud Light on the Closing date. Additionally, we converted each of Cloud Light’s outstanding options into options to acquire Lumentum common stock with equivalent value.

During the three months ended September 30, 2023, we incurred $3.7 million of transaction costs related to this acquisition, which were recorded under selling, general and administrative expenses in our consolidated statement of operations.

The acquisition will be accounted for as a business combination using the acquisition method of accounting, which requires, among other things, certain assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We are currently evaluating the purchase accounting for this acquisition.