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Local Tech Wire
WAKE FOREST, N.C. – (Nasdaq: POWR) is expanding its play in the light emitting diode space.
The Wake Forest-based provider of energy solutions, such as smart grid technology, has closed on the acquisition of Morrisville-based Innovative Electronics Solutions Lighting.
IES is a contract manufacturing firm and works with a number of LED lighting firms.
PowerSecure paid $4.4 million for a two-thirds ownership stake in IES. IES management retains the other third.
The company also has the option to take 100 percent control of the company thjrough an issue of PowerSecure shares with a minimum value of $10 million.
“The foundation for IES’s success is its expertise and market leading technology in the areas of LED power drivers, light engines, and thermal management solutions,” PowerSecure said in a statement. “This expertise and technology enables IES to design and manufacture high quality LED lighting products with strong competitive advantages because of their compelling returns on investment.”
Also on Tuesday, PowerSecure said it planned to acquire the remainder of ownership it didn’t already have in EfficientLights LED. PowerSecure already has a 67 percent ownership stake.
The deal is expected to close in the second quarter.
PowerSecure expects the deals to have a positive impact on earnings of 1 to 3 cents per share this year and “significant additional earnings in 2011.
“The IES team is extraordinary at developing innovative LED lighting products that deliver strong returns on investment and superior lighting quality, and their tremendous talents are highly complementary to our EfficientLights business,” said PowerSecure Chief Executive Officer Sidney Hinton.
“We are energized by these investments, and looking forward to the benefits they provide as we continue to develop our LED lighting capabilities and business as a significant growth driver for our future,” he added,
To acquire the remainder of EfficientLights, PowerSecure will pay $10 million through stock.