Luna Announces Sale Of Optoelectronic Solutions
Luna Innovations, an advanced optical technology, has announced it has closed on the divestiture of its Optoelectronic Solutions (OPTO) business to OSI Optoelectronics, Inc. a subsidiary of OSI Systems, Inc. for up to $18.5 million. OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries.
"Leveraging our industry-leading, proprietary fiber optics platform will allow us to better serve our customers and to generate long-term growth for our investors and employees. This divestiture is another important step in ensuring we have a robust and flexible balance sheet and a portfolio of complementary, scalable businesses."
"The addition of Luna's Optoelectronic Solutions business is well aligned with our focus on expanding and enhancing our product portfolios," said Manoocher Mansouri, OSI Optoelectronics' President. "As a leader in this area, this acquisition is expected to be a complementary addition with its highly regarded, customized solutions."
Transaction details and financial reporting
Originally acquired in 2015 as part of its merger with Advanced Photonix, Inc. (API), Luna's OPTO division designs and manufactures fully integrated photonic solutions employed across a wide range of industries. The division reported revenue of $13.1 million for the year ended December 31, 2017.
As part of the transaction, employees associated with the OPTO division located in Camarillo, CA and Montreal, Quebec, are expected to transfer to OSI. Luna plans to use transaction proceeds to invest in its core fiber optic based test and measurement platform, consistent with the key focus of its long term strategy.
Luna was advised by B. Riley FBR and Woods Rogers PLC.