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Lighting Science Group Corporation (LSG), a leading developer and integrator of intelligent and energy-efficient LED lighting solutions, has completed the acquisition of Lighting Partner BV (LPBV), an innovative manufacturer providing a broad range of LED and High-intensity Discharge (HID) lighting solutions for residential, commercial, and retail applications based in The Netherlands.
LSG has acquired 100 percent of the outstanding common stock of LPBV. As consideration for acquiring the outstanding common stock of LPBV, LSG paid the former shareholders of LPBV US$5 million and issued a total of 4.632 million shares of LSG common stock (representing approximately 16% and 13% of the actual and fully diluted shares of LSG common stock outstanding respectively). LSG also granted the former shareholders of LPBV certain piggyback registration rights and assumed expenses of approximately $1.2 Million incurred due to change of control of LPBV. LPBV had revenues of US$23 million with positive cash flow in 2007 and is expected to have positive cash flow on a standalone basis, before synergies, in 2008. Approximately 70% of LPBV's business is LED based and this is a rapidly growing part of the business in line with the overall trend in the global lighting market. The company has also launched an innovative LED lighting system, Eyeleds¬ (www.eyeleds.com) designed for indoor and outdoor applications globally. Eyeleds are currently distributed in over 35 countries and are used in the commercial and residential market.
"Today's acquisition creates a significant and immediate global presence for both companies and provides the foundation for us to become a leading player within the highgrowth LED lighting market," said Govi Rao, chairman and chief executive officer of Lighting Science Group. "We look forward to combining our complementary strengths and regional market positions to create a foundation for robust future growth opportunities. We continue to drive innovations that benefit our partners, consumers as well as the environment. The combination of our capabilities further enhances our ability to support our OEM partners with agility, reliability and scale."
"Combining LSG's extensive LED integration capabilities with LPBV's fixture design expertise and access to high quality manufacturing, puts us in a position to significantly accelerate the proliferation of our high performance lighting solutions." Mr. Rao added, "I believe the combination of LSG and LPBV creates one of the most innovative and diversified LED lighting solutions company with global presence and comprehensive capability across the emerging Digital Lighting Value Chain. We strongly believe this is a robust platform for significantly enhancing our ability to build shareholder value."
"The lighting industry is currently going through significant disruption and this partnership underscores our combined vision and commitment to shape the emerging digital lighting space," said Richard van de Vrie, managing director of Lighting Partner BV. "Combining our companies expands the breadth and depth of our respective portfolios and will help us deepen our customer relationships and drive increased sales to other targeted markets, globally. We foresee attractive opportunities for growth and believe that the combined company will be able to provide stronger enhanced products and services for our customers worldwide."
"We welcome the associates and partners of LPBV to the Lighting Science family and are excited about the prospects of driving growth and innovation globally", added Mr. Rao. I personally look forward to working with a fine team like LPBV and am glad to have Richard and his colleagues join our management team."
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