Luna Innovations announces acquisition of Silixa for $21.5M upfront in cash

Luna Innovations announced the strategic acquisition of Silixa, a UK-based company engaged in distributed fiber optic sensing solutions. Silixa is expected to achieve approximately $30M in 2023 revenue, representing approximately 15% annual growth on a constant currency basis. The purchase price consists of $21.5M in upfront cash consideration and up to an additional $16.5M in earnouts payable in 2025 upon the achievement of certain 2024 financial performance milestones. The transaction was funded with a portion of the proceeds from White Hat Capital Partners’ strategic investment in Luna, which was also announced today. Inclusive of modest cost synergies, the acquisition is expected to be accretive to non-GAAP earnings in the first year. “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 CEO 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.”