Lumentum Holdings will spend $5.7 billion in cash and stock to buy Coherent and expand its reach into lasers and photonics.

The San Jose, California, company said Tuesday that it would pay a 49% premium to the closing price of Coherent shares on Friday. The deal includes $100 in cash and slightly more than one share of Lumentum for each Coherent share.

Shares of Coherent jumped 34% after markets opened Tuesday, while Lumentum’s stock fell more than 10%.

Santa Clara, California-based Coherent Inc. provides lasers and laser-based technology for scientific, commercial and industrial uses.

Lumentum said the deal will help speed its push into the market for lasers and photonics outside of communications and 3D sensing applications.

The deal still needs approval from regulators and shareholders of both companies. Lumentum and Coherent expect it to close in the second half of the year.

Coherent’s stock price jumped more than $52 to $204.12 Tuesday morning, while broader indexes rose less than 1%. Shares of Lumentum fell $11.36 to $94.96.