In a statement Coherent Inc said, Lumentum Holdings Inc has raised its offer for the company to $6.9 billion in a three-way takeover battle for the laser firm. Under the terms of the new bid, Coherent shareholders will receive $220 in cash and 0.61 Lumentum shares for each share held.

In January, Coherent had agreed to a $5.7 billion deal with Lumentum attracting other bidders who are looking to grow their marketshare from the rising adoption of 5G and consumer electronics.

Late on Wednesday, in a report the Wall Street Journal had said, optical components maker II-VI Inc had submitted a new takeover offer for Coherent at $285 a share valuing the company at roughly $7 billion.

Last month, MKS Instruments offered $6 billion, followed by a $6.4 billion bid by II-VI.

Ever since, Lumentum and II-VI have engaged in a bidding war, making at least two counter offers each by sweetening the cash component. Further, Lumentum also said private-equity firm Silver Lake would make a $1 billion equity investment in the combined company. II-VI did not immediately respond to requests for comments.

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Tags: 5G, acquisirion, bidding war, coherent, Coherent Inc, consumer electronics, equity investment, II-VI Inc, Lumentum Holdings Inc, M&A, market share, marketshare, mergers, MKS Instruments, private equity, share, shareholders, shares, Silver Lake, three way takeover