Fiber-optics technology company Luna Innovations (NASDAQ: LUNA; Roanoke, VA) has acquired General Photonics (Chino, CA), a provider of components, modules, and test equipment focused on the generation, measurement, and control of polarized light critical in fiber-optic-based applications. The purchase price was $20 million, which includes a potential $1 million earnout payment.
General Photonics provides customers with technological solutions across a variety of industries, including those within Luna's strategic markets, and its component and module product lines--specifically its polarization measurement instruments--add to Luna's overall product portfolio.
Integrated into Luna's Lightwave division, General Photonics' product portfolio will add both breadth and depth to Luna's offering, and facilitate greater penetration within Luna's target customer base. In addition, several of Luna's instruments already incorporate General Photonics' products, creating vertical integration synergies.
"We are excited to announce the acquisition of General Photonics, another step in the execution of our core strategy. This acquisition brings a highly complementary product portfolio to the capabilities of Luna's communications test products," said Scott Graeff, president and CEO of Luna. "We intend to drive a quick and smooth integration as both company's products are built on similar electronics, optics and software platforms for high-precision measurement and control of light. This deal further demonstrates our commitment to use capital prudently for transactions that are quickly accretive to our earnings, and it is consistent with our previously stated goal to drive long-term value."
VP and GM of Luna's Lightwave Division, Brian Soller, said, "We have created a broader, stronger product portfolio that is centered around what we do best: measure and manage light in optical fiber. The complementary nature of our combined product lines will allow Luna to leverage existing channels to market and provide solutions across more of the value chain in our key target markets. We are now in a better position to service our customers' measurement needs in a rapidly evolving market, where the need for high-quality measurement and control of light is growing."
"The combination of Luna and General Photonics clearly strengthens both companies and creates greater opportunities to increase value for our customers," said Steve Yao, CEO, president, and founder of General Photonics. "I can't think of a better place for my company to continue the success we've created. And with access to the incremental engineering and sales resources available at Luna, we will be able to further accelerate our growth."