Lumentum Holdings Inc. (NASDAQ:LITE) shares are trading higher after the company announced an agreement to acquire Cloud Light for $750 million.

What To Know: Lumentum expects the deal to be immediately accretive to earnings per share and expects it will more than double the company's cloud intra-data center infrastructure revenue in the 12-month period after the close of the transaction.

Alan Lowe, Lumentum president and CEO, also commented, saying, "With Cloud Light, we are making a strategic investment to significantly expand our opportunities in the cloud data center and networking infrastructure space. Cloud Light provides us with the highest speed transceiver solutions at scale and complements our advanced component capabilities. This results in a broad product and technology portfolio that addresses a wide range of cloud operator needs."

Related Link: Sony's Insomniac Games Reveals A Webbed Link Between Wolverine And Marvel's Spider-Man 2

LITE Price Action: Shares of LITE were up 11.4% at $40.20 at the time of publication, according to Benzinga Pro. 

Image by Ralf Vetterle from Pixabay