The merger is expected to close next year.
Dutch technology giant Philips is merging its Lumileds and Automotive lighting businesses, the company announced today. Both businesses had combined sales of about 1.4 billion euros, roughly $1.9 billion, last year.
Don't Miss: Win a FREE Nintendo Switch in our Giveaway
Philips is expecting the merger to open new investment opportunities. Philips Group will continue to be a shareholder of the new company. Taking charge is Pierre-Yves Lesaicherre, the current CEO of Lumileds.
The integration of the two businesses within Philips Group is expected to close in 2015. Meanwhile, Philips is expected to spend over 30 million euros this year to set up the two businesses.
“Philips’ strategy in Lighting is to intensify its focus on connected LED lighting systems and services, LED luminaires, and LED lamps for the professional and consumer markets. Both our Lumileds and Automotive lighting businesses are strong players in the lighting industry and ready to pursue more growth and scale, independently of Philips Lighting," said Frans van Houten, Chief Executive Officer of Philips.