MACOM Buys Optical Receiver Business from Luna Innovations
Adding to its optical market position, MACOM Technology Solutions purchased the high speed optical receiver (HSOR) business from Luna Innovations Incorporated for $33.5 million. The deal comprises the assets, technology and operations of the HSOR business, including the employees supporting operations and administration, based in Ann Arbor, Michigan.
The HSOR business consists of the Picometrix line of high speed integrated coherent receivers and photodiodes that are marketed to the global telecommunications, data center and manufacturing testing industries. Luna acquired these operations through its merger with Advanced Photonix, Inc. in May 2015.
John Croteau, MACOM’s president and CEO, said “Similar to our high performance analog and 25G laser products, Luna’s industry-leading high speed optical receiver products and technology are well aligned with MACOM’s previously-announced growth strategy in cloud data centers and other high speed networking markets, and we are excited to be able to add these products to our growing portfolio through this tuck-in acquisition.”
MACOM said the transaction is expected to be neutral to accretive in the first year of combined operations and contribute to growth in the company’s 2018 fiscal year, which begins in October.
My Chung, president and CEO of Luna, said, “MACOM has recognized the value that we have created in this space and earlier this year approached us with this transaction opportunity. With their larger scale of operations, broader suite of product offerings and global footprint, we believe that MACOM provides a greater opportunity to drive long-term growth for the HSOR business, and the completion of this sale maximizes the value we would receive from the HSOR business.”
The purchase price included $29.5 million paid in cash at closing, with an additional $4.0 million to be held in escrow until December 15, 2018, allowing for possible working capital adjustments and post-close indemnification obligations.
Luna Innovations provides high speed optoelectronics and high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive industries. The assets and employees in Luna’s Terahertz operations were not included in the sale to MACOM.