Luna's Lunar Leap: Grabs $50M Investment To Fuel Silixa Buyout & More
Portfolio Pulse from Lekha Gupta
Luna Innovations Inc (NASDAQ:LUNA) has received a $50 million strategic investment from White Hat Capital Partners. The funds will be used to partially finance the acquisition of Silixa for $21.5 million in cash and up to $16.5 million in earnouts based on 2024 performance. Silixa is expected to generate $30 million in revenue in 2023. Remaining funds will repay a $17 million term loan and support growth initiatives, including fiber optic sensing solutions. As of September 30, 2023, LUNA had $6.028 million in cash and equivalents. LUNA's stock price rose 4.41% to $6.80.
December 21, 2023 | 5:40 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Luna Innovations received a $50M investment from White Hat Capital Partners to fund Silixa's acquisition and other growth initiatives. Silixa is expected to contribute $30M in revenue for 2023. LUNA's stock rose 4.41%.
The strategic investment and the acquisition news are likely to be viewed positively by investors, as they indicate growth and expansion, which is reflected in the stock's price increase. The expected revenue from Silixa suggests a significant contribution to LUNA's financials, further supporting the positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100