Philips to buy Color Kinetics in $791 million deal

News & Analysis from our July/August 2007 issue.

Aug 28th, 2007
Content Dam Leds En Articles Print Volume 4 Issue 8 Features Philips To Buy Color Kinetics In 791 Million Deal Leftcolumn Article Thumbnailimage File
Philips is to further strengthen its solid-state lighting portfolio with the acquisition of Color Kinetics, the Boston, MA-based innovator of LED lighting systems and technologies. The Netherlands-based lighting giant has offered to acquire all of CK's outstanding shares for $34 each, with the total of $791 m (EUR 592 m) to be paid in cash upon completion. CK's enterprise value is EUR 516 m.

Color Kinetics' sales increased at a compound annual growth rate of 31% in 2001-2006, reaching $65 m in 2006. In addition to its product sales, CK has a fast-growing licensing income stream that adds significantly to its value, says Philips.

Upon close of the transaction, expected in the second half of 2007, the merged entity will operate under the not-too-catchy name of Philips Solid-State Lighting Solutions. Philips' and CK's LED fixtures and CK's OEM modules will be ultimately co-branded Philips/Color Kinetics.

The merged entity will be headquartered in the new CK facility in Burlington, MA and this site will become Philips' leading global R&D center of innovation for all LED-based fixture/luminaire product lines.

CK has a broad technological portfolio covering important patents relating to intelligence and control technology for LED lighting, with more than 70 patents issued to date. CK also has in excess of 15,000 professional installations worldwide.

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This article was published in the August 2007 issue of LEDs Magazine.

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