| Nexxus Lighting Inc. has closed the previously announced acquisition of fellow solid-state LED lighting manufacturer Lumificient Corp. The newly acquired company will be operated as a wholly owned subsidiary of Nexxus Lighting and will continue to operate out of its manufacturing facility in Maple Grove, Minnesota.
Nexxus believes that the strength of Lumificient’s intellectual property, combined with the potential to build on its own IP with expanded R&D capabilities, positions Nexxus Lighting to bring more new products to market faster.
Under the terms of the stock purchase agreement, the shareholders of Lumificient received cash consideration of $1.1 million, 475,000 shares of Nexxus Lighting's Common Stock, and, based upon certain future earn-out formulations, additional shares could be earned. Lumificient had 2007 revenue of ~$2.2 million and 1Q08 revenue of ~$933,000.
“In addition to Lumificient’s current growth rate for its existing solid-state LED lighting products, which serve the sign lighting and commercial lighting markets, the team at Lumificient brings expanded R&D capabilities to Nexxus and a platform of new technology that we feel will provide significant opportunities for growth in the general illumination `white light' market,” stated Mike Bauer, President and CEO of Nexxus Lighting.
Zdenko Grajcar, founder of Lumificient, will serve as Nexxus Lighting’s CTO and will oversee the expanded R&D team. Carey Burkett will continue in his role as president of Lumificient Corp, managing the day to day operations of the business unit
"We expect to introduce several exciting new products utilizing patent-pending technologies developed by Zdenko and his team at LightFair in late May," added Bauer.
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