- Ams OSRAM confirms that it will sell the Fluence horticulture lighting systems business to Signify in line with previous comments on an expected larger size disposal
- Purchase price was agreed at USD 272 Million on a debt free / cash free basis
- Ams OSRAM will focus on its position as a leading provider of advanced LED technology for the horticulture market and continues as a strategic LED component supplier to the combined business
- The acquisition is expected to close in first half of 2022, subject to standard regulatory approvals and other conditions
For some time now, ams Osram has said it will emphasize chip-level activities rather than the broader illumination businesses that it picked up via ams’ 2020 acquisition of Osram. Today, it backed up those words like never before, announcing it is selling its horticultural lighting unit, Fluence, to Osram’s erstwhile lighting rival, Signify for $272 million.
Fluence is a leading global provider of energy-efficient LED lighting system solutions for the horticultural industry. Acquired by OSRAM in 2018, the company was recently named in the inaugural list of “Next Big Things in Tech” by Fast Company, the U.S. business magazine, where its innovative lighting solutions earned an honorable mention recognition for the company’s contribution to changing how the world cultivates food.
“Fluence and Signify are a strong match in complementary lighting expertise for the horticulture market. Signify is an industry leader with over a century of history bringing innovative lighting technology, products and services to market. We are excited about the future opportunities for the Fluence employees, customers, and business partners that this combination will bring," said Wilhelm Nehring, CEO Digital Business Unit.
Fluence has been a leading provider of LED light systems to the cannabis industry. It has been a mover and shaker in research and in surveys regarding the use of LEDs in cannabis cultivation.Fluence employs more than 200 people. In the trailing 12 months (October 2020 to September 2021), Fluence generated USD 141 million (EUR 124 million) in revenue. Fluence will operate as an entity within Signify’s agricultural lighting business in Division Digital Solutions.
While ams Osram is selling off Fluence, it said will still provide the LEDs that Fluence will use as part of Signify, which is also already an ams Osram LED customer.
“Ams Osram will continue to build on its position as a leader in red, blue, and white LEDs for the horticulture market,” said Frans Scheper, executive vice president of ams Osram’s Opto Semiconductor group. “We look forward to continue providing Signify, and Fluence as part of Signify, leading technology for their business.”