Luna And API To Merge
Wednesday, February 11, 2015
Luna Innovations Incorporated, which develops and manufactures fiber optic sensing and test & measurement products for the telecommunications, aerospace, automotive, energy, and defense markets and Advanced Photonix, Inc. (API), a leading supplier of optoelectronic sensors, devices, and instrumentation for the telecommunications, defense, medical, and industrial markets have agreed to merge.
The combined company, which will keep the Luna name and be headquartered in Roanoke, Va., will provide greater capability across a broader market base, with a strong balance sheet and potential operating synergies. The merged company will have pro forma combined revenue for the 12 months ended September 30, 2014 of approximately $49.9 million, compared to Luna’s historical revenues of $20.0 million for the 12 months ended September 30, 2014. Combined with the cost savings from only a single public company infrastructure, Luna will thus be fundamentally better positioned for improved profitability. The combined company will have significant intellectual property protection for the many technologies in its combined product portfolio, with over 200 patents and patent applications.
The combined company will have a strong foundation from Luna’s core test & measurement products and API’s High Speed Optical Receiver (HSOR) and Optosolutions product lines, enabling continued investment in the growth of areas such as Luna’s strain & temperature sensing business and API’s next generation of receivers and detectors.
Additionally, the combined company plans to continue developing a pipeline of technologies for future commercialization in Luna’s Technology Development Division and API’s Terahertz operations.
“This merger will enable us to provide even greater capability across a broadened market base, providing improved opportunity for growth,” said Luna President and CEO My Chung. “Joining forces with a company like API will help us accelerate our path to profitability.”
“We look forward to working with Luna to create a dynamic company with greater potential,” said Donald Pastor, Chairman of the Board for API. “We are very proud of the technology, products and markets that we’ve developed at API, and are excited at the prospect of what we may be able to do together with the talented team at Luna.”
Richard Kurtz, CEO of API, added, “The merger of our two companies provides significant opportunity for growth. The combined product lines will strengthen the merged company’s position in the marketplace by offering more for each customer.”
My E. Chung will continue as CEO of the combined company and a member of the board of directors. The board of directors will be expanded to seven seats and will be composed of three directors designated by Luna’s board of directors, who will include Richard W. Roedel as chairman, John B. Williamson III and Michael W. Wise, and three directors designated by API’s board of directors, who will include Donald Pastor, Gary J. Spiegel and Ed J. Coringrato Jr.
“We’re creating a significantly stronger company by combining Luna’s proven technology with API’s components and subsystems,” stated Richard Roedel, Luna’s Chairman of the Board.