LED Holdings and Lighting Science Group combine forces
Two LED lighting companies have merged to form a strong player in the solid-state lighting space.
In June 2007, LED Holdings acquired LED Effects, a designer and manufacturer of custom LED lighting and digital lighting controls. Govi Rao, formerly Vice President and General Manager of the Philips Solid State Lighting business in North America, joined LED Holdings as president and CEO (see LED Effects acquired, appoints Govi Rao as CEO).
LED Holdings has contributed all of its assets, including $15 million in cash, to Lighting Science Group in exchange for a combination of preferred and common stock representing 70% of the common stock and 80% of the voting power of Lighting Science Group on a fully-diluted basis.
"We believe this transaction will further bolster our market position and ability to develop and market a complete spectrum of digitally-controlled lighting solutions from color-changing to white light," said Rao, who becomes CEO and chairman of LSG.
"Combining people, technologies, and complementary strengths, this is a unique opportunity for us to deliver innovations that fulfill the increasing demand for differentiated solutions in key market segments globally," continued Rao.
Affiliates of Pegasus Capital Advisors, L.P. are the largest owners of LED Holdings and, as a result, beneficially own approximately 42% of the common stock of Lighting Science Group on a fully-diluted basis.
Ken Honeycutt will retain his role as president and COO of Lighting Science Group, bringing more than 30 years of experience in the lighting industry, including his role as CEO and president of Acuity Brands Lighting.
"We are pleased to be joining forces with LED Holdings at a time when the market for LED technology is truly taking shape," said Honeycutt. "Customers looking for any kind of LED solution will be able to come to us and find the right people, technology and service to deploy the most advanced, creative and sustainable lighting solutions on the market today."
Among the other members of the executive team are Kevin Furry, founder of LED Effects, Inc., with more than 15 years of experience in the LED market, who will serve as Chief Technology Officer; and Fred Maxik, founder of Lighting Science, Inc., and inventor of several patented LED products, who will serve as Chief Scientific Officer.
Richard Weinberg, a partner of Pegasus Capital said, "LED technology has enormous benefits over traditional lighting technologies - lower energy consumption, longer life and enhanced flexibility in design and controls. Today, LEDs are in the early stages of market adoption, and we believe they will replace conventional light sources at an increasingly rapid pace over the next few years." He added, "I believe this company is extremely well positioned to innovate and grow, and Pegasus is excited to support such a seasoned management team."