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Luna Innovations, a pioneer in advanced optical technology has announced the sale of its Optoelectronic Solutions (Opto) business to OSI Optoelectronics, a subsidiary of OSI Systems. OSI 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. The total valuation of the acquisition declared is USD 28.5 million.
According to Scott Graeff, President and Chief Executive Officer of Luna, the transaction demonstrates strong execution of Luna’s strategy to focus its business on the core, fiber optic based test and measurement technology platform. Leveraging its industry-leading, proprietary fiber optics platform will allow the company to better serve its customers and to generate long-term growth for investors and employees. This divestiture is another important step in ensuring they have a robust and flexible balance sheet and a portfolio of complementary, scalable businesses.
According to Manoocher Mansouri, OSI Optoelectronics’ President, the addition of Luna’s Optoelectronic Solutions business is well aligned with their focus on expanding and enhancing product portfolios. As a leader in this area, OSI expects this acquisition to be a complementary addition with its highly regarded, customized solutions.
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.
