Coherent, Inc.

Coherent, Inc.

Company type	Subsidiary
Industry	Laser technology
Predecessor	Coherent Radiation
Founded	May 1966 (1966-05) in Palo Alto, California, United States
Founder	James Hobart and five partners
Defunct	2022 (2022)
Fate	Acquired by II-VI Incorporated and rebranded as Coherent Corp.
Successor	Coherent Corp.
Headquarters	Santa Clara , United States
Area served	Worldwide
Key people	Andreas W. Mattes (CEO as of 2020)
Products	Laser systems, laser components, laser measurement instruments, lenses, mirrors, diodes
Parent	II-VI Incorporated (since 2022)

Coherent, Inc., based in Santa Clara, California, is a U.S. firm focused on designing, producing, and servicing laser technology and specialized components. Established in May 1966 by physicist James Hobart along with five partners, the company went public in 1970. Through a series of acquisitions, Coherent significantly broadened its market footprint, increasing its revenue from $400 million in 2004 to close to $2 billion by 2021. In 2022, II-VI Incorporated acquired Coherent, Inc., subsequently rebranding the combined organization as Coherent Corp.

Founding and initial financing

In May 1966, six engineers founded Coherent, Inc., initially named Coherent Radiation, in Palo Alto, California. The startup was financed with $10,000 drawn from the founders’ own savings. That same year, the company introduced the first commercially available carbon dioxide laser. Sales reached approximately $500,000 during its inaugural year and expanded to $6 million by 1970 following the release of a second-generation laser product.

The company attracted a $250,000 investment from the Rockefeller family in 1967, followed by an additional $250,000 from private backers in 1968. Coherent proceeded to file for an initial public offering in 1970.

Growth from 1970s through 1990s

During this period, Coherent diversified into lasers serving consumer markets, medical fields, scientific research, and industrial uses. In 1981, it acquired the scientific division of Lambda Physik, a German producer of excimer laser technology. The next year saw the purchase of Laser-Optronic GmbH in Germany and the establishment of a joint venture with Japan’s Miyama and Co.

Despite becoming the world’s largest manufacturer of laser equipment, Coherent faced challenges with unprofitable segments caused by product defects and inefficiencies in manufacturing. Founder James Hobart returned as CEO in 1988 to lead a corporate turnaround by adopting Japanese manufacturing methodologies such as just-in-time manufacturing and continuous improvement techniques. These initiatives resulted in a 60% increase in productivity alongside a 58% reduction in costs.

By the 1990s, medical lasers represented half of the company’s revenues. Coherent also expanded its semiconductor division through acquisitions including Applied Laser Systems, ATx Telecom Systems, Uniphase Corporation, and acquiring an 80% share in Tutcore Oy, LTD. Bernard Couillaud was appointed CEO in July 1996; Hobart left the company the following year. In April 1999, Coherent purchased Star Medical Technologies, Inc., a subsidiary of Palomar specializing in medical laser applications, for $65 million.

Developments during the 2000s

The company broadened its offerings by acquiring Lambda Physik in 2003—known for ultraviolet lasers used in flat-panel TV annealing processes. John Ambroseo took over as CEO in 2004 and spearheaded several strategic acquisitions that propelled annual revenues from $400 million to nearly $2 billion. Key purchases included Excel Technology for $376 million in 2006 and Lumera—a German pulse laser manufacturer—in 2012 for $52 million, which strengthened Coherent’s capabilities in industrial micromachining.

In 2015, Coherent acquired Raydiance for about $9.3 million; this company specialized in lasers for automotive and medical manufacturing sectors. The following year marked a major acquisition of Rofin-Sinar for $942 million—a competitor focused on materials processing—further consolidating Coherent’s position within the laser solutions market. In 2018, expansion continued with the purchase of Germany’s O.R. Lasertechnologie, a producer of lasers tailored for additive manufacturing applications.

Andreas W. Mattes was named CEO in April 2020 and led the organization through ongoing growth until July 2022 when II-VI Incorporated completed its acquisition of Coherent Inc., resulting in the formation of the unified entity known as Coherent Corp.

Products and services

Coherent provides a range of laser systems, components, and support services designed for various sectors and uses. The company manages several subsidiaries that focus on specialized processes such as engraving, drilling, and soldering. Its extensive product lineup features items like lenses, mirrors, diodes, laser measurement instruments, as well as lasers intended for industrial and scientific research purposes.

The Bernard J. Couillaud Prize

Since 2017, Coherent has collaborated with the OSA Foundation to present the annual Bernard J. Couillaud Prize, commemorating its founding CEO. Couillaud played a pivotal role as both a business visionary and a pioneer in laser technology development alongside Nobel Prize winner Theodor W. Hänsch. His contributions notably advanced dye lasers, diode-pumped solid-state lasers, and Ti-sapphire lasers. This award grants $20,500 along with up to $5,000 in travel funds to early-career researchers making impactful progress in ultrafast laser science with tangible applications.