Luna Innovations Acquires General Photonics, A Leader in Characterization and Control of Light for Photonics Applications
Acquisition will accelerate growth in Luna’s communications test
segment
ROANOKE, Va.--(BUSINESS WIRE)--Mar. 4, 2019--
Luna Innovations Incorporated (NASDAQ: LUNA), a global leader in
advanced fiber optic-based technology, today announced that it has
acquired General Photonics Corporation, a Chino, California-based
leading provider of innovative components, modules and test equipment
focused on the generation, measurement and control of polarized light
critical in fiber optic-based applications. The purchase price was $20
million, which includes a potential $1 million earnout payment. General
Photonics provides customers with advanced technological solutions
across a variety of industries, including those within Luna’s strategic
markets.
General Photonics’ component and module product lines are an ideal
addition to Luna’s overall product portfolio. Its polarization
measurement instruments are highly complementary to Luna’s
industry-leading line of optical measurement tools. Integrated into
Luna’s Lightwave division, General Photonics’ product portfolio will add
both breadth and depth to Luna’s offering, and facilitate greater
penetration within Luna’s target customer base. In addition, several of
Luna’s instruments already incorporate General Photonics’ products,
creating vertical integration synergies.
“We are excited to announce the acquisition of General Photonics,
another step in the execution of our core strategy. This acquisition
brings a highly complementary product portfolio to the capabilities of
Luna’s communications test products,” said Scott Graeff, President and
Chief Executive Officer of Luna. “We intend to drive a quick and smooth
integration as both company’s products are built on similar electronics,
optics and software platforms for high-precision measurement and control
of light. This deal further demonstrates our commitment to use capital
prudently for transactions that are quickly accretive to our earnings,
and it is consistent with our previously stated goal to drive long-term
value.”
Vice President and General Manager of Luna’s Lightwave Division, Brian
Soller, Ph.D., said, “We have created a broader, stronger product
portfolio that is centered around what we do best: measure and manage
light in optical fiber. The complementary nature of our combined product
lines will allow Luna to leverage existing channels to market and
provide solutions across more of the value chain in our key target
markets. We are now in a better position to service our customers’
measurement needs in a rapidly evolving market, where the need for
high-quality measurement and control of light is growing.”
“The combination of Luna and General Photonics clearly strengthens both
companies and creates greater opportunities to increase value for our
customers,” said Steve Yao, Chief Executive Officer, President and
Founder of General Photonics. “I can’t think of a better place for my
company to continue the success we’ve created. And with access to the
incremental engineering and sales resources available at Luna, we will
be able to further accelerate our growth.”
Conference Call Information
Luna will discuss this announcement on a previously announced
fourth-quarter and year-end fiscal 2018 conference call at 8:30 am (EST)
today. The call can be accessed by dialing 844.578.9643 domestically or
270.823.1522 internationally prior to the start of the call. The
participant access code is 8384348. Investors are advised to dial in at
least five minutes prior to the call to register. The conference call
will also be webcast live over the Internet. The webcast can be accessed
by logging on to the “Investor Relations” section of the Luna website, www.lunainc.com,
prior to the event. The webcast will be archived under the “Webcasts and
Presentations” section of the Luna website for at least 30 days
following the conference call.
About Luna
Luna Innovations, Incorporated (www.lunainc.com)
is a leader in optical technology, providing unique capabilities in
high-performance, fiber optic-based, test products for the
telecommunications industry and distributed fiber optic-based sensing
for the aerospace and automotive industries. Luna is organized into two
business segments, which work closely together to turn ideas into
products: a Technology Development segment and a Products and Licensing
segment. Luna’s business model is designed to accelerate the process of
bringing new and innovative technologies to market.
Forward-Looking Statements
The statements in this release that are not historical facts constitute
“forward-looking statements” made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties. These statements include Luna’s expectations
regarding the expected benefits of the acquisition, including the
ability of the acquisition to accelerate the company’s growth, the
integration of General Photonics’ products into Luna’s product lines,
the ability to better deliver value to customers and address their needs
and the company’s business strategies. Management cautions the reader
that these forward-looking statements are only predictions and are
subject to a number of both known and unknown risks and uncertainties,
and actual results, performance, and/or achievements of Luna may differ
materially from the future results, performance, and/or achievements
expressed or implied by these forward-looking statements as a result of
a number of factors. These factors include, without limitation,
uncertainties regarding integration of the companies’ respective
employee bases, service offerings and business operations, potential
adverse reactions or uncertainties regarding the acquisition among the
companies’ customers, potential unknown liabilities and unforeseen
expenses associated with the acquisition, potential performance
shortfalls as a result of the diversion of management’s attention caused
by completing the acquisition and integrating the companies’ operations
and other risks and uncertainties set forth in Luna’s periodic reports
and other filings with the Securities and Exchange Commission (“SEC”).
Such filings are available on the SEC’s website at www.sec.gov
and on Luna’s website at www.lunainc.com.
The statements made in this release are based on information available
to Luna as of the date of this release and Luna undertakes no obligation
to update any of the forward-looking statements after the date of this
release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190304005401/en/
Source: Luna Innovations
Investor Contacts:
Jane Bomba
Luna Innovations
Incorporated
Phone: 303-829-1211
Email: IR@lunainc.com
Sally J. Curley
Luna Innovations Incorporated
614-530-3002
IR@lunainc.com