Coherent Inc., a California-based laser tools and systems developer, has announced on Wednesday a definitive agreement with Rofin-Sinar Technologies Inc. Under the $942 million deal, Coherent will acquire the Michigan-based laser developing and manufacturing company.  

Rofin-Sinar will get $32.50 a share which is a 41.9% premium to its closing price on Wednesday. Following the information of agreement, Rofin share prices have been witnessed to increase by 44% to $33 in the after market trading on Wednesday, according to a report published in Reuters.

The laser developer has postponed its annual meeting scheduled to take place on Thursday. Coherent intends to close the deal within six to nine months while eyeing to add earning per share during the first full year after closing. It also expects the deal to strengthen its position in materials processing while targeting $30 million annual savings within 18 to 24 months of closing, reports The Wall Street Journal.

Rofin has recorded net sales of $519.6 million in 2015. The company products include solid-state lasers, fiber lasers, diode lasers, extensive range of pulsed laser products, CO₂ lasers and delivering solutions to a global customer base. The transaction is aligned with Rofin strategy on increasing its scale and pursuing accretive growth opportunities, reports StreetInsider quoting John Ambroseo, Coherent's President and Chief Executive Officer.