Sources inform ''Globes'' that GE Lighting has acquired Lightech Ltd. for $15-20 million, a major achievement for the Lod-based family firm, which is still embroiled in legal proceedings following the failure of its acquisition by Canada's Carmanah Technologies Corporation (TSX: CMH).
Lightech develops components for managing the energy supply to lighting units in order to save energy. The company designs drivers and transformers for use in LED and halogen lighting which it manufactures in China. Lightech chairman David Schreiber and his son Zvi, who serves as CEO, have managed the company since 1996.
As a family firm, its financial data emerged in the announcement of its acquisition by Carmanah a year ago: in the first half of 2010, Lightech had a net profit of $800,000 on $10.6 million revenue. Revenue for the full year was about $20 million. No newer data is available.
Zvi Schreiber founded Tradeum, which was sold for $500 million in 2000. He also founded Unicorn Solutions, which was acquired by IBM Corporation (Nasdaq: IBM) for $10 million in 2000, and Israeli-Palestinian software company G.ho.st, which closed down after raising $4.1 million from Benchmark Capital and angel investors.
Zvi Schreiber said, "GE Lighting is an innovative and high regarded company in the international lighting industry. Lightech's team is pleased by the combining of forces with a lighting company with history and depth, whose vision is to boost our business and lead a lighting revolution during a time of massive change in our industry."
GE Lighting general manager global products John Brelus told "Globes", "We look for technologies and products all over the world which can supplement our basket of products. In Lightech, we found extraordinary technology and business. It provides the brain of LED lighting, and we hope that it will become an important part of our lighting division."
"Globes": What are GE Lighting's plans for Lightech?
Brelus: "We are not planning any changes. The company will continue to operate as it has done until now, and I hope we can expand it in the future."
You are unconcerned by the mutual lawsuits with Carmanah?
"GE conducts thorough due diligence on every company it sees as an acquisition target. We did this for Lightech too, and found no obstacle."
Why haven't you disclosed the amount of the acquisition?
"Lightech is a private company, so we decided to keep the figure confidential."
Lightech has a development facility in Israel, and sales and marketing networks in Europe, Asia, and the US. This somehow fits in with GE Lighting's strategy to become the global leader in the transition from incandescent lighting to new and more energy efficient systems.