Taiwan-based Delta Electronics, a provider of power and thermal management solutions, and Amerlux, a US-based LED architectural lighting solutions company, have jointly announced the signing of a definitive agreement under which a wholly-owned subsidiary of the former will acquire 100% of Amerlux's interests for US$90 million.
The transaction is expected to close during the second quarter of 201, they said, adding the agreement includes an earn-out mechanism in which Delta will pay an additional pre-established amount for the transaction should Amerlux's 2019 EBITDA and revenues reach a predetermined target.
Delta said building automation has become a major focus for its long-term growth strategy. The proposed acquisition is expected to benefit customers with a broader portfolio of Delta IoT-enabled smart green solutions for sustainable buildings and cities, which already includes building automation, energy management, commercial and industrial LED lighting, surveillance, as well as indoor environmental quality systems, it said.
"As a world-class corporate citizen committed to enabling energy conservation and lower carbon emissions for mankind, Delta continues to broaden its solutions portfolio to improve the energy efficiency, security and comfort of buildings and cities. Lighting is an integral focus for Delta because, in the IoT era, it is an ample source of crucial data for the optimization of smart automation systems," said Delta's CEO Ping Cheng, as cited in a company statement.
"Amerlux has a strong reputation in the field of architectural LED lighting, which we believe will enhance Delta's profile as a total solutions provider. The combined offering of our companies will deliver substantial advantages to our customers and channel partners. Amerlux's existing facilities in Oakland, New Jersey will continue to produce interior and exterior lighting products, and the current management and employees of Amerlux will remain in place," Cheng said.
Frank P Diassi, founder and chairman of Amerlux, said, "Since the introduction of LEDs approximately 10 years ago, the market has grown more and more sophisticated in its technology. The initial phase of LED marketing was simply the replacement of incandescent luminaries and focused primarily on energy savings. The current phase of LED marketing focuses on the quality of the light produced by the LEDs. We are now entering the third phase of LED marketing which involves controls of the luminaries, a technology in which Delta excels. The combination of Delta and Amerlux will accelerate the development of solutions for smart buildings and sustainable cities."
