Luna Innovations to merge with Michigan-based Advanced Photonix
- February 2, 2015
Roanoke-based Luna Innovations plan to merge with Michigan-based Advanced Photonix Inc., a supplier of sensors, devices, and instruments.
The combined company will keep the Luna name and be based in Roanoke. It will have pro-forma combined revenue for the 12-month period ending Sept. 30 of about $49.9 million. Luna’s revenue during the same time was $20 million.
“This merger will enable us to provide even greater capability across a broadened market base, providing improved opportunity for growth,” Luna President and CEO My Chung said in a statement. “Joining forces with a company like API will help us accelerate our path to profitability.”
Chung will be CEO of the combined company and served on its board of directors.
API, based in Ann Arbor, Mich., serves the telecommunications, defense, industrial, and medical markets. Luna develops and manufactures fiber-optic sensing and test and measurement products for the telecommunications, aerospace, automotive, energy, and defense markets.
In their most recently reported quarterly earnings, API reported a loss of $368,000 on revenue of $7.79 million while Luna had a loss of $771,000 on revenue of $5.37 million.
Luna said the combined company will have significant intellectual property protection for the many technologies in its combined product portfolio, with more than 200 patents and patent applications.
When the merger closes, API shareholders will receive 0.31782 shares of Luna common stock for each share of API common stock. API and Luna will hold stockholder meetings to approve the merger.
The combined company’s board will have seven seats. It will include three directors designated by Luna’s current board — Richard W. Roedel as chairman, John B. Williamson III and Michael W. Wise — and three directors selected by API’s board of directors —Donald Pastor, Gary J. Spiegel and Ed J. Coringrato Jr.