Luna Closes on Divestiture of OPTO Business
Optical technology developer Luna Innovations Inc. 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 is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, health care, defense, and aerospace industries.
“The transaction demonstrates strong execution of our strategy to focus our business on our core, fiber-optic-based test and measurement technology platform,” said Scott Graeff, president and CEO of Luna. “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.”
Originally acquired in 2015 as part of its merger with Advanced Photonix Inc., 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 2017. As part of the transaction, employees associated with the OPTO division located in Camarillo, Calif., and Montreal 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.
“The addition of Luna’s Optoelectronic Solutions business is well-aligned with our focus on expanding and enhancing our product portfolios,” said Manoocher Mansouri, president of OSI Optoelectronics. “As a leader in this area, this acquisition is expected to be a complementary addition with its highly regarded, customized solutions.”
https://www.photonics.com/Buyers_Guide/Luna_Innovations_Inc/c8862