Intelligent LED lighting pioneer joins global lighting leader
BOSTON, June 19 -- Color Kinetics Incorporated (NASDAQ:CLRK), a leading innovator of LED lighting systems and technologies, today announced that it has entered into a definitive agreement to be acquired by Royal Philips Electronics (NYSE:PHG)(NYSE:AEX:)(NYSE:PHI). Philips will pay $34 per share in cash for all shares and options, or a total consideration of approximately $791 million. The acquisition is subject to customary regulatory approvals and is expected to close in the third quarter of 2007.
Color Kinetics is widely acknowledged as the first to deliver complete, integrated systems for LED-based illumination that have since become a commonly adopted standard. The company has achieved over 15,000 installations, developed critical control and power technologies to enable next-generation systems, amassed a powerful patent portfolio encompassing 71 issued patents to date, licensed its technology in diverse markets beyond the lighting industry, and worked alongside government agencies to promote the advancement of LED lighting as the best long-term choice for energy efficiency. The acquisition by Philips will dramatically fortify the combined company's reach and efforts to make its technology the de facto platform for intelligent LED lighting worldwide.
Upon close of the transaction:
o The merged entity will operate under the name Philips Solid-State
Lighting Solutions, with intelligent and premium LED product lines
ultimately co-branded Philips/Color Kinetics.
o Philips' and Color Kinetics' LED fixtures and Color Kinetics' OEM
modules will be marketed under the co-brand in the United States and
Canada by Color Kinetics' sales force.
o The merged entity will be headquartered in Burlington, Massachusetts and
will become the leading global research & development center of
innovation for all LED-based fixture or "luminaire" product lines. The
LED luminaire portion of Philips' existing North American operation in
New Jersey will be merged with the Burlington operation.
o Color Kinetics will cease to be publicly listed on the Nasdaq stock
"We have long said that LEDs are the future of illumination - not a passing novelty - and we've supported that view with unwavering focus on the research and development of new technologies, sales channels, partnerships and industry initiatives to make it a reality. Today we announce our biggest and most significant step towards putting our core technology and IP at the heart of every future application of intelligent LED lighting," said Bill Sims, President and CEO, Color Kinetics. "We believe that joining Philips, the global lighting leader, is in the best interest of our shareholders, customers, partners, and employees, and that our combined resources will produce the best possible entity to drive the LED lighting revolution forward."
"This acquisition uniquely positions Philips as a major player in the fast-growing solid-state lighting business with technology, expertise and intellectual property in all parts of the value chain of integrated LED-based lighting solutions," said Theo van Deursen, Chief Executive of Philips' Lighting division. "The technological platform obtained through this acquisition will serve as a springboard for Philips to further create sustainable value through making innovative LED lighting solutions widely available. We admire Color Kinetics' expertise, which they built up in only 10 years of existence, and we will foster the company's creative and entrepreneurial flair in the future while boosting growth by integrating it into the global lighting leader."
About Color Kinetics
Celebrating its 10th anniversary this year, Color Kinetics Incorporated (NASDAQ:CLRK) transforms environments through new, dynamic uses of light. Its award-winning lighting systems and technologies apply the benefits of LEDs as a highly efficient, long lasting, environmentally friendly, and inherently digital source of illumination - reinventing light itself as a highly controllable medium. Color Kinetics also enables widespread adoption of LED lighting through OEM and licensing partnerships in diverse markets. The company is headquartered in Boston, MA with offices in the UK and China. More information is available at http://www.colorkinetics.com/.
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