Delta Electronics Inc (台達電), Taiwan’s leading power and thermal solutions provider, on Friday said that it has reached a deal to acquire US-based Amerlux LLC for US$90 million.
Delta has agreed to purchase all shares of Amerlux, a LED architectural lighting solutions company, through its subsidiary Delta Electronics (Netherlands) BV, it said.
The company expects to close the transaction during the second quarter of this year, Delta said in a statement.
The agreement also includes an earn-out mechanism under which Delta Electronics (Netherlands) would pay a set additional amount for the transaction should Amerlux’s earnings before interest, taxes, depreciation and amortization (EBITDA) and revenue for this year reach a predetermined target, Delta said.
EBITDA is a popular gauge of the profitability of companies with large capital expenditure.
Delta has in recent years focused on building automation, which covers a wide range of smart solutions for offices, hotels, hospitals and residential buildings.
The company in 2016 acquired building automation system providers Austria-based Loy Tec Electronics GmbH and Canada-based Delta Controls Inc, and in 2017 purchased a considerable stake in the Internet protocol security solutions provider Vivotek Inc (晶睿) to enhance its portfolio of smart and green solutions for low-carbon-footprint buildings and cities.
The acquisition of Amerlux would increase Delta’s offering of solutions for in and around buildings, including building automation, energy management, commercial and industrial LED lighting, surveillance and indoor environmental quality systems, it said.
“Amerlux has a strong reputation in the field of architectural LED lighting, which we believe will enhance Delta’s profile as a total solutions provider,” Delta chief executive officer Cheng Ping (鄭平) said. “The combined offering of our companies will deliver substantial advantages to our customers and channel partners.”
Amerlux’s facilities in Oakland, New Jersey, would continue to produce interior and exterior lighting products, Cheng said, adding that Delta aims to retain Amerlux’s management and employees.
Amerlux president and CEO Chuck Campagna said the deal would help the firm become a “total lighting systems provider.”
“By complementing strengths from both sides, we will be able to provide enhanced value to our customers and further our position in the smart lighting market,” he said in a statement.
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