Luna set for sale to private equity group TJC

Luna Innovations, the Roanoke, Virginia company specializing in fiber-optic test and sensing technology, is set to be sold to private equity group The Jordan Company (TJC), for just under $50 million in cash.

According to a release detailing the proposed transaction, the $1.39-per-share agreement remains subject to shareholder approval - although key stakeholder White Hat Capital Partners, which owns around 25 per cent of Luna, is in favor of the deal.

That price represents close to a 90 per cent devaluation of the company over the past five years, during which time Luna was de-listed from the Nasdaq after persistently failing to file financial reports.

Sensing equipment

Luna’s products enable fiber-optic sensing of strain, temperature, vibration, and material thickness, alongside units for terahertz imaging, and a suite of test equipment solutions for optical components and fiber-optic networks.

But since reporting quarterly sales of nearly $31 million back in November 2023, the company has not issued any formal results, with long-term CEO Scott Graeff departing in March 2024 and several senior executives following suit.

Kevin Ilcisin, Luna’s current CEO and president, said in a release announcing the TJC deal:

“This agreement enhances Luna’s ability to achieve our mission of solving our customers’ most urgent problems using our mastery of light.

“The transaction would close our chapter as a publicly traded company and provide access to the industrial and financial experience and foundation of the TJC platform.

“We believe this combination strengthens our commitment to our loyal customers and provides greater opportunities for our employees and suppliers.”

Mission-critical products

Erik Fagan, a partner and head of industrial technology at New York-headquartered TJC, which owns a number of other industrial technology brands but none specifically involving photonics technology, added:

“Luna manufactures specialized, highly engineered, and mission-critical products for optical applications across a wide spectrum of industrial technology end markets.

“We have structured our all-equity transaction to support the growth and investment needed to meet customers’ growing demand and to continue delivering innovative products that improve their performance and efficiency.”

TJC says that it will release a proxy statement including Luna’s financial statements for the 2025 and 2024 fiscal years, as well as the opening quarter of 2026, prior to the pending stockholder vote - with the transaction expected to conclude before the end of this year.

Robbie Redmond, another TJC partner, commented: “We are excited to partner with Kevin and the entire Luna management team. Luna’s dedicated employees have built a remarkable foundation in fiber optic-based measurement technology, and we look forward to investing behind their leadership - supporting the team as they scale the business, advance their product portfolio, and deliver even greater value to the customers who depend on Luna.”