MACOM Technology Solutions is set to buy the assets and operations related to Luna Innovations’ high-speed optical receivers (HSOR) business. Luna Innovations develops and manufactures new-generation products for the aerospace, automotive, energy, defense, and telecommunications markets.
The sale includes the operations associated with Luna’s development, manufacturing and sales of products such as high-speed integrated coherent receivers and photodiodes. Luna originally acquired these operations as part of its merger with Advanced Photonix (API), in May 2015. The assets and employees associated with Luna’s Terahertz operations are not transferred in this transaction.
As part of the transaction, employees associated with the company’s HSOR operations and administration in the company’s location in Ann Arbor, Michigan, will transfer to MACOM. The Picometrix line of high-speed optical receivers and optical-to-electrical converters serve the global telecommunications, data center and manufacturing testing industries.
Similar to its High Performance Analog and 25G laser products, Luna's industry-leading high speed optical receiver products and technology are well-aligned with MACOM's previously-announced growth strategy in Cloud Data Centers and other high-speed networking markets. The company expects the transaction to be neutral to accretive in the first year of combined operations, and to contribute meaningfully to growth in our Fiscal Year 2018.
The purchase price includes $29.5 million paid in cash at closing and additional $4.0 million to be held in escrow until December 15, 2018 for possible working capital adjustments to the purchase price and potential satisfaction of certain post-closing indemnification obligations. Luna currently intends to utilize a portion of the proceeds of the transaction to invest in expanding its fiber optic sensing product offering.