Coherent Corp. has signed a definitive agreement to divest its materials processing tools division to Bystronic, a global provider of sheet metal processing technology. The deal supports Coherent’s plan to streamline its portfolio and focus on higher-growth photonics markets, while the proceeds will go toward debt reduction—expected to be immediately accretive to earnings per share.
The unit being sold, located near Munich, Germany, employs about 400 people and generates roughly $100 million in annual revenue. The transaction is expected to close in early 2026, pending regulatory and customary closing conditions. Bystronic, headquartered in Switzerland, specializes in automation, laser cutting, and bending solutions for the metal fabrication industry, and this acquisition expands its vertical integration in laser-based manufacturing tools.
Coherent has been rebalancing its business mix toward core markets such as datacenter optics, communications, and industrial photonics. The move follows a multi-year portfolio review under CEO Jim Anderson that has included consolidating semiconductor and display operations and expanding investments in optical interconnects and power electronics.
• Division based near Munich with ≈400 employees and ≈$100 million in annual revenue
• Proceeds from sale to reduce debt, immediately accretive to EPS
• Closing expected in early 2026, subject to regulatory approval
• Transaction aligns with Coherent’s focus on datacenter, communications, and industrial photonics markets
“We are pleased to have reached this agreement with Bystronic. This transaction is the result of our portfolio review process, and furthers our strategy to concentrate efforts on core growth markets and products,” said Jim Anderson, CEO of Coherent.
🌐 Analysis: This divestiture continues Coherent’s strategic pivot toward high-value photonics segments such as optical transceivers and power components for AI data centers. It also mirrors a broader industry trend as photonics suppliers streamline non-core industrial operations—similar to Lumentum’s divestment of its commercial lasers business and II-VI’s restructuring before its Coherent merger.
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