LAKEWOOD RANCH -- Evolucia Inc., the LED lighting company that expanded last month into Europe, has filed a letter of intent to acquire all the assets of Affineon Digital Lighting, a private LED fixture and control system company in Coral Springs that generated $4 million in revenues last year.
The acquisition will allow Evolucia to expand its catalog of LED lighting products to include parking and large-area lighting. This acquisition also strengthens and complements Evolucia's existing LED business, said Chief Executive Officer Mel Interiano of Evolucia,
Products Affineon already has in development will enhance Evolucia's portfolio, Interiano said, from a lighting trade show in Philadelphia where he is launching six new products. The company will also get design team expertise and equipment to build the products.
"This acquisition will provide us with several important components for our accelerated growth, including rapid engineering of LED products, a complementary product line that allows our sales network to capture additional distribution opportunities in both the interior and exterior markets, an expanded independent sales rep network and a customer base that includes Fortune 500 companies, such as CVS and Disney, as well as the federal government," Interiano said
CEO Woody Smith of Affineon Lighting has been appointed Evolucia's chief technology officer.
"This merger will integrate the best light distribution technology in the industry, 'Aimed Optics,' and best-in-class thermal and electronics technology, a combination that will ensure the delivery of durable, high-performance LED lighting products for years to come," Smith said in a press release. "In addition, the mass manufacturing capabilities that Evolucia has developed through its partnership with Leader Electronics enhances the value of our overall LED lighting offering by leveling the playing field with larger tier 1 and tier 2 lighting companies."
Since Interiano moved to Evolucia, he has been on a mission to launch a global LED company with a full portfolio of LED lighting products, including street and interior lighting, and a global infrastructure.
Global structure growth has been swift. Last year the company announced a deal in Mexico, last month it entered the European market and last week it opened an office in Australia.
Interiano has a habit of partnering with companies before buying them so he knows exactly how an acquisition will benefit Evolucia.
According Evolucia's letter of intent, the company will purchase the assets of Affineon for a price not to exceed $12 million in cash only. Quarterly payments by Evolucia will begin only after the second consecutive quarter of positive operating cash flow by Evolucia, and will be based upon a formula that combines quarterly profit from Affineon product sales with the overall profitability of Evolucia during each quarter.
Evolucia expects to close the acquisition, subject to approval from Evolucia's board of directors and the consummation of a definitive purchase and sale agreement, during the third quarter. Evolucia has already secured the exclusive rights to the Affineon products and engineering capabilities.
Toni Whitt, business editor, can be reached at 941-745-7087. Follow her on Twitter @toniTwhitt.