Philips Lighting will acquire Shenzhen LiteMagic Technologies Co. Ltd., a maker of lighting luminaires and control systems for urban and façade lighting.
The move will allow Philips to expand its façade lighting portfolio but also to better capitalize on the fast-growing market for urban light emitting diode (LED) lighting in China.
LiteMagic, which was founded in 2004, has implemented lighting projects in China and has a strong foothold in many cities, Philips said. Some of the projects include lighting for buildings, bridges and boulevards.
Currently, Philips has a research and development center in China as well as five manufacturing sites in the country. The transaction is subject to Chinese regulatory approval and expected to close in the third quarter of this year. Financial details were not disclosed.