Carmanah Technologies Corporation, a manufacturer of solar LED lighting and power systems for industrial applications, has announced that it has signed a definitive agreement to acquire all of the outstanding shares of Lightech Electronic Industries Ltd., an Israeli corporation, for $18.5 million.
Lightech is a manufacturer of power supplies for LED lighting, supplying major lighting OEMs and distributors. Lightech designs drivers and transformers for use in LED and halogen lighting fixtures from research and development facilities located in Israel and California, manufactures these drivers and transformers through EMS contractors in China and distributes these products worldwide through logistics centers in Hong Kong, California, Canada and the United Kingdom. For fiscal 2009, Lightech’s audited International Financial Reporting Standards revenues were US$19.5 million, gross margin was 26.2% and net loss was US$1.2 million. For the first six months ending June 30, 2010, Lightech’s unaudited IFRS revenues were US$10.6 million, gross margin was 40.0% and net income was US$0.8 million.
Carmanah’s strategic rationale for the acquisition is to:
1. Gain access to the large global transition to LED technology by acquiring a core component (electronic driver) supplier to lighting providers,
2. Expand the company’s offering to include components and systems to key lighting providers and customers,
3. Strengthen the company’s global presence, manufacturing, delivery, and routes to market, and
4. Generate operating and R&D efficiencies in both companies.
“With this merger, Carmanah makes an expansion into a complementary and synergistic business” said Rob Cruickshank, Chairman of Carmanah. “Carmanah will be taking advantage of the vast lighting market’s current shift to LED, and applying the joint resources of Carmanah and Lightech to satisfy the urgent market need for LED lighting. In turn, the resulting technology developments at Lightech will ultimately advance the capabilities and applications of Carmanah’s outdoor area illumination product portfolio.”
