Philips has agreed to buy all the remaining shares in US LED lighting systems company Color Kinetics for £17 per share, or a total consideration of approximately £400m to be paid in cash upon completion. Subject to regulations and shareholder approval, the transaction is expected to close in the second half of 2007.
Massachusetts-based Color Kinetics holds a portfolio of patents relating to intelligence and control technology for LED lighting.
Philips has previously invested in LED technology with its acquisition of LED dye company Lumileds in 2005, and the recent purchase of TIR Systems, which provided Philips with a line of solid state lighting (SSL)-modules. According to Philips, these will enhance the company’s position in supporting the shift to more energy-efficient lighting solutions, using LED sources.
Philips says it foresees market growth for LEDs as their performance measured in lumens per watt is rapidly becoming competitive with traditional light sources, especially with recent advances in white light technology.