Horticultural lighting producer, Signify, announced today that it will acquire competitive supplier Fluence, a subsidiary of OSRAM.
Based in Austin, Texas, Fluence was acquired for USD 272 million (EUR 242 million).
“This acquisition will strengthen our global Agriculture lighting growth platform and extend our position in the attractive North American horticultural lighting market,” according to the release. “We expect the global market for agricultural lighting to grow by more than 20% per year to EUR 1.6 billion in 2024.”
Based in Eindhoven, The Netherlands, Signify was previously known as Philips Lighting.
Fluence will continue to operate as an entity within Signify’s digital solutions division. The company’s technology and research will be added to Signify’s portfolio.
“This includes light recipes for the legal growing of cannabis – which, due to the legalization in Canada and many US states in recent years, currently generates the majority of Fluence’s sales – and light recipes for the company’s fast-growing business to grow other crops,” says the release. Signify and Fluence share a similar policy in that both entities only provide lighting products to cannabis growers who are legally permitted to do so, including markets that permit growing for recreational use.
“Fluence’s technology also includes more than 140 issued and pending patents, focusing on areas such as light quality, thermal management and installation methods. Currently Fluence generates a majority of its sales in North America.”
“We’re excited to announce that we’re acquiring Fluence, strengthening our agricultural lighting business, one of our main growth platforms. It also further underlines the strategic importance of the North American market to our business,” said Harsh Chitale, Division Leader Digital Solutions at Signify. “We feel that now is the right moment to join forces, allowing both of us to serve more customers with high-quality horticulture lighting products.”
“Since Fluence’s founding, it has been our sole mission to improve the interaction between light and life to yield a healthier and more sustainable world,” said David Cohen, CEO of Fluence. “The combination of our companies will immediately expand our collective footprints and inject valuable expertise into both companies’ product innovations. We look forward to uniting with the Signify team.”
Fluence employs more than 200 people and generated USD 141 million (EUR 124 million) in revenue from October 2020 to September 2021.
The acquisition is expected to close in the first half of 2022, subject to regulatory approvals and other conditions.
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