Philips, the Dutch technology company, Tuesday agreed to pay about €592m ($793m) for Color Kinetics, a US lighting manufacturer whose product illuminates the London Eye, the giant ferris wheel on the banks of the River Thames.
The deal values the Boston-based company at $34 a share, with an implied enterprise value of €516m, including about €76m of cash on the balance sheet as of March 31.
Color Kinetics makes lighting systems based on light emitting diode technology and had sales of about $65m last year. Philips, the world’s biggest light manufacturer, said the deal would aid its push to “lead the future global shift to more energy-efficient lighting solutions”.
Theo van Deursen, chief executive of Philips’ lighting division, said: “The technological platform obtained through this acquisition will serve as a springboard for Philips to further create sustainable value through making innovative LED lighting solutions widely available.”
Mr Van Deursen added that LED was “the future of illumination – not a passing novelty”.
Last week Philips completed the acquisition of TIR systems, a Canadian solid state lighting company, for about €53m in cash.
Bill Sims, president and chief executive of Color Kinetics, said the deal was in “the best interest of our shareholders, customers, partners, and employees” because “our combined resources will produce the best possible entity to drive the LED lighting revolution forward”.