Bridgelux of Livermore, California USA, announced that through the signing of a definitive agreement, China Electronics Corporation (CEC), and ChongQing Linkong Development Investment Company will acquire the company. Bridgelux also announced that it will spin off its smart lighting business in a company called Xenio. Xenio will focus on the development of software-enabled lighting modules for the emerging to the Internet of Things (IoT) market.
CEC, one of the largest IT companies in China, controls 61 second-level subsidiaries, including 13 listed holding companies and has over 70,000 employees. CEC also has manufacturing facilities throughout China. Terms of the acquisition agreement were not disclosed.
“Bridgelux has all of the characteristics we look for in an investment, including leading technology, a broad IP portfolio and a globally recognizable brand and channel,” stated Mr. Liu, CEO of CEC. “This investment is an important step toward further aligning CEC and partner assets into a coordinated supply chain built to serve the unique requirements of the solid state lighting market.”
CEC holds investments in lighting fixture and lamp manufacturing as well as other IT and consumer electronics technologies. Additionally, CEC noted that it and its affiliates have built technology development and manufacturing operations across the LED supply chain, offering Bridgelux a long-term cost advantage.
“We are convinced that CEC is the perfect partner to help Bridgelux achieve its next level of growth. Leveraging the momentum of our existing partnerships with CEC affiliates, complimented by a strong supply chain, world-class manufacturing, and chip, packaging and go-to-market capabilities, CEC will help Bridgelux expand its technology footprint and reach more customersglobally.” stated Brad Bullington, CEO of Bridgelux.
After its acquisition, Bridgelux will continue to operate as a standalone company, reporting into CEC through a US subsidiary. The current Bridgelux management team will lead Bridgelux and Xenio. Xenio will focus on designing LED module and manufacturing to address the emerging lighting opportunity in the Internet of Things (IoT) market.
The Xenio team most recently debuted its Xenio Power, Xenio Point, and Xenio Link products at Lightfair International in New York. Bridgelux expects that Xenio will benefit from technology and distribution relationships with Bridgelux in addition to CEC and Toshiba.
Bridgelux and CEC expect the acquisition to close in the next six to eight weeks, subject to regulatory approvals. After the close, Bridgelux will continue serving its customers on a standalone basis through continuing its existing products and moving forward with a next-generation roadmap.
Xenio will reportedly benefit from partnerships and investments from Bridgelux, VantagePoint Capital Partners, Toshiba, DCM Ventures, and other ecosystem partners.
Brad Bullington, CEO of Bridgelux will serve as executive chairman of the new company. Xenio will seek to integrate LED technology with power, radio, sensor, application and cloud software into a low-cost, easy-to-install network. These technologies will combine to enable deep dimming and color tuning. Deploying the sensor network will help reduce energy consumption, and enable real-time engagement with occupants or even goods inside a building. In a store, for example, the Xenio network can brighten a spotlight as shoppers walk down an aisle to draw attention to a specific product. Similarly, lighting can adjust in response to changes in natural lighting or dim in employee cubicles when they are away. The lighting can also change color make the environment more comfortable and productive.
“Establishing Xenio as a stand-alone company is a significant acknowledgment of the unique capabilities required to serve a new set of connected lighting and data infrastructure platforms which we believe will unlock the potential of solid state lighting technology,” stated Brad Bullington, executive chairman at Xenio. “We are creating a new company that has a strong LED-heritage and all of the requisite tools to grow its business. At the same time, this transaction allows us to immediately focus on addressing the rapidly growing opportunity in IoT and connected devices.”
“With a focus on providing a complete, intelligent technology solution for lighting and systems manufacturers, we believe we can deliver a revolutionary smart-lighting platform that will further enable the Internet of Things,” continued Bullington.