A new round of mergers and acquisitions in the LED industry continues to ferment

[Source: "High - tech LED - Research and Review" December issue reporter / Liu Qiaomei ]

A new round of mergers and acquisitions in the LED industry is quietly starting, and in the post-crisis era, everything is reshuffled.

Since the beginning of this year, mergers and acquisitions have become the most frequent business activity in the global LED industry. The story of "strong cooperation", "big fish eating small fish", "small fish eating shrimp" seems to be constantly being staged, and has become a constant game rule in a changing business society.

On August 9, 2012, a upstream M&A case in Taiwan attracted the attention of the market. Jingyuan Optoelectronics and Guangguang Optoelectronics passed the share conversion method. Guangguang Optoelectronics became a subsidiary of Jingyuan Optoelectronics. The conversion ratio was 4.85 shares of Guangguang Optoelectronics common stock and 1st share of Jingyuan Optoelectronics common stock. The total transaction amount reached 4 billion. Yuan New Taiwan Dollar.

In the past seven years, Jingyuan Optoelectronics has acquired four LED chip manufacturers and is firmly seated in the global LED chip leader. Prior to this, Jingyuan Optoelectronics also acquired Taiwan Guolian Optoelectronics, Yuan Arsenic Optoelectronics and Lianyong Optoelectronics. M&A also seems to be one of the key reasons for the rapid growth of Jingyuan Optoelectronics.

Li Bingjie, chairman of Jingyuan Optoelectronics, revealed in an interview that the main reason for M&A is to expand production capacity and market, acquire new technology and own each other's patents.

Two mergers and acquisitions wave
The actions of the giants often indicate industry trends.

From 2007 to 2010, it can be regarded as the first wave of mergers and acquisitions in the LED industry.

In 2007, Philips acquired Color Kinetics, a professional LED manufacturer based in Boston, USA for a total purchase price of 592 million euros; in 2009, Philips announced an acquisition agreement with Luce, the largest LED lighting factory in Europe; December 2010 On the 6th, Philips announced the acquisition of LED, traditional entertainment lighting and lighting control solutions design, manufacturing and distributors - Jiali Shi (Group) Co., Ltd.; March 12, 2007, CREE company for 200 million US dollars, Acquired Huagang Optoelectronic Parts Co., Ltd. under the name of “Hua Gang” under the name of Huagang Optoelectronics Group, including Huagang International Trade Co., Ltd., Huizhou Huagang Optoelectronics Co., Ltd., Huagang Optoelectronics (Shanghai) Co., Ltd. and Huagang Japan Limited.

With the rapid development of the LED industry, from the beginning of 2011, the second wave of mergers and acquisitions has been surging.

On August 18, 2011, CREE announced the successful acquisition of Ruud Lighting Incorporated, a traditional lighting manufacturer, for $583 million in cash plus conversion.

GE Lighting then announced the official completion of its acquisition of Lightech in September 2011. The privately held company is a leader in the lighting technology industry and is headquartered in Tel Aviv, Israel.

As an industry leader in providing LED electronic drivers for lighting industry and tungsten halogen transformers, Lightech has a presence in Europe, the US and Asia.

Maryrose Sylvester, President and CEO of GE Lighting, said: "Completing the acquisition of Lightech, the global leader in LED electronic drivers, has brought us its top professionals. The company's drives meet the needs of efficient performance power supply and are further optimized in GE lighting LED systems. Indispensable part."

Since then, in October 2011, OSRAM has acquired Encelium Technologies through Townsend Ventures, Inc., adding its portfolio of lighting controls, energy management systems and software.

OSRAM believes that it will essentially help develop its LED business through this acquisition, which is an important step towards becoming one of the leading LED lighting solutions providers worldwide.

“A series of acquisitions and integrations of major international companies are more focused on long-term goals. M&A targets are companies with forward-looking technology and a certain market share. It is particularly noteworthy that the focus of these multinational mergers and acquisitions has begun to shift. Downstream subdivision application areas, in order to break through in the market segment." Hongyan South Chairman of Heshan Guangmingyuan Lighting Appliance Co., Ltd. said.

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