Philips completes acquisition of Color Kinetics
LED lighting manufacturer Color Kinetics is now being assimilated into Philips after the acquisition deal was finally completed.
Amsterdam, The Netherlands and Burlington, Massachusetts, USA
Royal Philips Electronics (NYSE:PHG, AEX:PHI) has completed its acquisition of Color Kinetics Incorporated, a leader in designing and marketing innovative lighting systems based on LED technology.
As a result of the transaction, Color Kinetics will be financially consolidated with immediate effect within the Luminaires business group of Philips’ Lighting division.
The acquisition of Color Kinetics further bolsters Philips’ strong intellectual property portfolio, adding important patents relating to intelligence and control technology for LED lighting. Color Kinetics also has in excess of 15,000 professional installations worldwide and an array of large, industrial customers in professional channels.
The acquisition of Color Kinetics builds on the acquisition of Lumileds in 2005, through which Philips ensured a leading position in high-power LEDs, and on the recent acquisition of TIR Systems, which provided Philips with a strong line of fully-integrated Solid State Lighting (SSL)-modules used to deliver integrated lighting products to fixture manufacturers.
The following Q&A provides further information:
Q. Who is "Philips Solid-State Lighting Solutions?"
A. We are a business unit within Philips Lighting's Luminaires group. We are the North American sales operation of the Luminaires group, and the global center of R&D and product development for all of Philips' LED-based luminaires.
Q. What will happen to the CK brand?
A. In the regions where we have sales responsibility (North America/Mexico and Japan), we will operate under the co-brand of Philips/Color Kinetics. Elsewhere around the world, our products will ultimately be marketed under the Philips brand.
Q. What does this mean for CK's Lighting Systems business?
A. For the remainder of 2007, it's business as usual. CK's LED lighting systems will be marketed under the Philips/Color Kinetics co-brand in North America/Mexico and Japan via our existing salesforce and network of manufacturer's reps, distributors and authorized dealers. Outside of these regions our lighting systems will ultimately be marketed under the Philips brand via our existing international salesforce and distributors, in addition to Philips' own salesforce. Beginning January 1, 2008, our international salesforce and distribution partners will be absorbed into Philips' own salesforce and channels according to geography.
Q. What does this mean for CK's OEM business?
A. We are dedicated to growing our OEM business as Philips Solid-State Lighting Solutions. We will continue to develop, sell and support our entire range of OEM products, and we look forward to helping partners bring new, exciting LED offerings to market.
Q. What does this mean for CK's Licensing business?
A. We are as committed as ever to R&D and innovation, and will continue to protect our inventions with patents. Our Licensing program is fueled by our growing intellectual property portfolio and licenses will continue to be negotiated on a case by case basis.
Q. Where will Philips Solid-State Lighting Solutions be based?
A. As of Monday, August 27, we are headquartered at 3 Burlington Woods Drive in Burlington, Massachusetts. This state-of-the-art facility will become the leading global research & development center of innovation for all of Philips' LED-based luminaire product lines.