Luna Innovations Incorporated (NASDAQ: LUNA), a global leader in advanced fiber optic-based technology, has announced the strategic acquisition of Silixa, a UK-based leader in distributed fiber optic sensing solutions, for $21.5 million in cash and up to $16.5 million in earnouts.
The deal, which was funded by White Hat Capital Partners’ strategic investment in Luna, is expected to increase Luna’s non-GAAP earnings in the first year and add $30 million in revenue in 2023.
The acquisition will enhance Luna’s product offerings, expand its serviceable addressable market, and increase its scale. Silixa’s portfolio of sensing technologies and monitoring capabilities complements Luna’s current products and provides access to emerging end markets, such as carbon capture and geotechnical monitoring. Silixa also brings proprietary sensing technologies and 200+ patents, expanding Luna’s patent portfolio to nearly 1,000. Silixa’s presence in the U.K. will also strengthen Luna’s EMEA organization.
“Today’s announcement is a pivotal milestone in the history of Silixa and a testament to the hard work and dedication of our employees,” said Co-Founders Mahmoud Farhadiroushan and Tom Parker, who are both continuing with Luna. “We’re thrilled to be joining a company that shares our focus on innovation and our passion to provide solutions to some of the world’s most critical challenges,” added Glynn Williams, CEO at Silixa, who will remain as an advisor to Luna through 2024.
“The addition of Silixa not only elevates the portfolio of solutions we already offer in our key end markets, but also further strengthens our position as an enabler of energy transition by extending our reach into exciting new growth sectors, such as carbon capture and storage, as well as into monitoring processes that will help sustain ecosystems and safeguard fragile environments,” said Scott Graeff, President and Chief Executive Officer of Luna. “Silixa brings important technology capabilities and strong talent that we expect to leverage across our EMEA footprint, which we expect will drive profitable growth across our European enterprise.”