Luna Innovations, Advanced Photonix Agree To Merge - Quick Facts

(RTTNews) - Luna Innovations Inc. (LUNA), 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 supplier of optoelectronic sensors, devices, and instrumentation for the telecommunications, defense, medical, and industrial markets, announced their agreement to merge.

The combined firm, which would keep the Luna name and be headquartered in Roanoke, Va., would offer greater capability across a broader market base, with a strong balance sheet and potential operating synergies. The merged company would have pro forma combined revenue for year to September 30, 2014 of around $49.9 million, compared to Luna's historical revenues of $20.0 million for the year ended September 30, 2014. Combined with the cost savings from only a single public company infrastructure, Luna would thus be fundamentally better positioned for improved profitability.

The combined company would have significant intellectual property protection for the many technologies in its combined product portfolio, with over 200 patents and patent applications. The combined company would have a strong foundation from Luna's core test & measurement products and API's High Speed Optical Receiver 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.

Further, the combined company intends to continue developing a pipeline of technologies for future commercialization in Luna's Technology Development Division and API's Terahertz operations.

Upon the completion of the merger, API stockholders would receive common shares of Luna at a ratio of 0.31782 shares of Luna common stock for each share of API common stock owned by them. My Chung would continue as CEO of the combined company and a member of the board.