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Philips buys LED lighting business

Steve Bush
Tuesday 26 June 2007 10:49
Philips is to acquire Massachusetts-based luminair-maker Color Kinetics to complete its fab to installation  LED lighting capability, and control important patents.

“This acquisition 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, CEO of Philips’ Lighting division.

The firm recently bought the remainder of Californian power LED making joint venture Lumileds, and LED module make TIR Systems.

“Color Kinetics has a strong portfolio of LED luminair products,” Philips spokesman Arent Hesselink explained to EW.

Color Kinetics also has a number of patents which cover aspects of the control of LED lighting fixtures over data busses, and the control of the emission colour of such fixtures using pulse with modulation.

Some of these patents, considered controversial by some industry insiders, have sweeping claims and have been the subject of law suits within the US.

Hesselink said: “They have very important patents and we are very interested in them.”

He was reluctant to be drawn further. And will they be licensed to others? “It is too early to say,” he replied.

According to Philips, the implied enterprise value of Color Kinetics in this offer is E516m, taking into account about E76m cash on balance sheet as of March.

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