China's CEC acquisition of profit behind the interpretation of Puri

Puri (Bridgelux), solid-state lighting (SSL) technology developers and manufacturers, has been recently announced by the China Electronics Corporation (CEC) and Chongqing airport development investment company investment group led the acquisition.

China CEC acquisition Puri

Puri, solid state lighting (SSL) technology developers and manufacturers, recently announced that it has been led by China Electronics Corporation (CEC) and Chongqing airport development investment company's investment group.

CEC was founded in 1989, has 61 control of the two member companies, of which 13 listed holding company. With over 70000 employees, CEC is one of the largest IT companies in China, with manufacturing facilities in Beijing, Shanghai, Wuhan, Shenzhen, Nanjing, Changsha, and Xiamen. Financial terms of the agreement have not been disclosed.

CEC general manager Liu Liehong said: "Puri advances over the past 13 years has help to promote the world using energy-efficient LED technology, we look forward to have all Puri investment characteristics, including leading technology, extensive intellectual property portfolio and global brands and channels, this investment is an important step in the unique needs toward the further adjustment of CEC and the partner of the assets into the service in the solid-state lighting market supply chain coordination. "

With its existing investments in lighting fixtures and lighting, as well as other IT and consumer electronics technologies, CEC is expected to provide a solid scale and growth. In addition, CEC and Affiliated Companies have established technology development and manufacturing operations in the LED supply chain, these partners will give long lasting and Puri cost advantages, consolidate its leading position in the existing technology, and will further allow focus on segmentation and Puri application level innovation, to better serve customers, the company said.

CEO Brad, said: "we are confident that CEC is a perfect partner to help grow to a new level of growth in. By virtue of our CEC is associated with the company's existing partnerships, CEC strong supply chain, world class manufacturing, chip, package and the ability to enter the market, will help expand its footprint and Puri technology to attract more customers in the global. "

After the completion of the acquisition, Puri will continue as an independent company, reported by the U.S. subsidiary of CEC. In addition, Puri will split its smart lighting business as a new independent company, Xenio. Bridgelux and Xenio will be led by the current management team. Xenio will focus on the design and manufacture of LED modules, the goal is to seize the emerging $135 billion internet of things lighting market.

The acquisition is expected to be completed within the next six to eight weeks, subject to regulatory approval.

Crystal electric sweetness

The development of crystal and crystal electric (2448) shares of the company in Taiwan, the industry said, Bridgelux LED is always on the downstream plant, but go the Fabless route, commissioned by the crystal electric LED wafer foundry, packaging and module is developed by the foundry industry, and has developed the control information Chinese Crystal Electronics group in TV, PC, street related required LED, will be the supply chain support, crystal electric or beneficiaries, the acquisition is conducive to the expansion of the sea power crystal.

Bridgelux has 750 upper and lower LED patent, and another CREE (CREE) to reach a cross licensing, and patent is Bridgelux in performance in recent years gradually decline, to maintain the lifeblood of advantages, the development of crystal will be included in the command is equal to some degree, breaking the patent barrier, the subsequent integration may still need time but, see, LED factory has to want to make an international match.

It is understood that in 2012 the development of crystal with Bridgelux share agreement, intends to obtain the development of crystal Bridgelux is about 7% shares for $25 million, then $360 million worth of Bridgelux, but the acquisition amount is only $130 million, according to Bridgelux in the current economic slump value shrank, but also provide good acquisition opportunities for mainland enterprises.

National team shot

Just over half of 2015, mainland LED industry announced the 2 LED merger, although the purchase has a world of difference, but the 2 acquisitions were seen official capital, which shows the mainland official in addition to grant MOCVD equipment, with land stocks soared, fund-raising easier, the official also spare no effort in the LED capital game.

In April this year land owned Jinsha River group announced the acquisition of Lumileds 80.1% stake, is land owned typical snacks big mergers shock LED global market, with more details of the exposure, the industry pointed out that this case up to US $3 billion 300 million merger, the mainland government invested $2 billion, the Jiangxi government invested about 7 to $800 million, Jinsha River Group invested less than $100 million, the ultimate goal to promote the listing of Lumileds.

The development and acquisition of Bridgelux crystal size of only $130 million, there is a world of difference amount of the acquisition, but the acquisition of silver bullet sources in addition to the development of crystal's own funds, the national team is one of the pipeline funds may be a listed company in the United States, Bridgelux is not, after land owned lineage transformation, whether the listing to raise funds in capital markets, but also the average PE shares jumped under the option.

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