Luna Innovations Acquires LIOS Sensing

Key Facts

• Compelling Strategic Benefits Luna expects that this acquisition will: Provide Luna with long range, fully distributed temperature and strain sensing capability, intellectual property, products and expertise that strongly complements Luna’s existing offerings Bring a diverse, blue-chip customer base, representing a significant opportunity for cross-selling Expand Luna’s intellectual property portfolio to approximately 800 patents active and pending Augment Luna’s international presence, building upon its already strong international customer base and sales capability Generate rapid expansion opportunities into high-growth markets such as security and perimeter detection, smart infrastructure monitoring and oil and gas Leverage the combination of LIOS and Luna to rapidly grow operations, customer base, offerings, and financial profile Transaction Terms and Financing Luna is acquiring LIOS for €20 million - approximately $22 million in USD.
• About Luna Luna Innovations Incorporated (www.lunainc.com) is a leader in optical technology, providing unique capabilities in high-performance, fiber optic-based, test products for the telecommunications industry and distributed fiber optic-based sensing for a multitude of industries.
• These statements include Luna's expectations regarding its technological and product capabilities, the nature of its market position, technological advancement, the integration of LIOS Sensing’s employees, intellectual property position and portfolio, and other expected benefits of the acquisition, including the breadth of product offerings, complimentary products, expertise and sales opportunities and the ability to expand offerings to Luna’s and LIOS Sensing’s customer groups, the ability to establish a strong international presence, potential operational improvements and the ability to expand into additional high-growth markets,.
• These factors include, without limitation, uncertainties regarding integration of the companies’ respective employee bases, offerings and business operations, potential adverse reactions or uncertainties regarding the acquisition among the companies’ customers, potential unknown liabilities and unforeseen expenses associated with the acquisition, potential performance shortfalls as a result of the diversion of management’s attention caused by completing the acquisition and integrating the companies’ operations, failure of demand for Luna's products and services to meet expectations, failure of target market to grow and expand, technological and strategic challenges, geopolitical and economic factors and those risks and uncertainties set forth in Luna’s Form 10-Q for the three and nine months ended September 30, 2021, Luna’s Form 10-K for the period ended December 31, 2021, and Luna's other periodic reports and filings with the Securities and Exchange Commission ("SEC").

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