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OLEDWorks to acquire key parts of Philips OLED lighting components business

Philips sees the merit of OLED as a light source for specific applications in its systems and services portfolio and will continue to apply OLEDWorks' panels in its finished products

28 Apr 2015 | Editor

OLEDWorks have announced that they have reached an agreement with Royal Philips to buy selected parts of its OLED light source components business.

According to the announcement over the coming months, Philips will establish a new legal entity and transfer key parts of its OLED business, including the production facility located in Aachen, Germany, and relevant intellectual property, into it.

All shares of the new entity will subsequently be sold to OLEDWork. Once the new company has been established, OLEDWorks will be granted a license by Philips to market its OLED light source components under the Philips brand. Philips will remain a distributor of the panels through its OEM sales channels.

Editor's Comments:

As someone who watches and analyses the OLED Lighting industry this an intriguing development, and raises many questions:-

  • Why did Philips sell their OLED business to OLEDWorks?
  • What price will Philips receive for the business?
  • Which parts are not included?
  • Will OLEDWorks raise more investment to pay for the acquisition?
  • How much money will OLEDWorks need to raise to pay for development and future expansion?
  • What other consolidation could occur in the emerging OLED lighting industry?
  • What products will enter production?
  • What OLED stack will eventually go to market?
  • How will the industry respond to this announcement

For the time being answers to these questions will probably remain speculative. However, after speaking with people directly involved in the acquisition what is clear is OLEDWorks were not the only company interested in Philips OLED Lighting business.

What seems to have been the overriding rationale for the sale was the long-term viability of the OLED Lighting business. There is a belief that the combination of OLEDWorks' deep technical know-how of OLED technology coupled with Philips' heritage in lighting - brand name and sales channels - and a ready made factory in Aachen is a strong commercial proposition. I think few will be able to argue any different.

The Lumiblade OLED Lighting business will continue to supply existing customers - so no changes there - some restructuring may occur - an inevitable outcome of most acquisitions.

In a few months more information will undoubtedly become available and help inform us about the future of OLED Lighting and the future of the acquisition.

For me personally the separation of the OLED Lighting business from Philips is a good move. Free from corporate constraints the technology will be able to flourish and reach its full commercial potential - it has already earned its place as a major energy-efficient lighting component.

How often in a lifetime is it possible to see a small innovation in lighting blossom into a fully commercialised product that will impact the illumination of our lives for many years to come.

It has been an exciting ride following the developments of OLED Lighting in Europe - from the early first steps of the Olla project - to the first demonstrators - to the first commercial products and now to the first acquisition - without a doubt it has certainly been intriguing.

If everything continues as expected then the future for OLED production in Europe looks good.

Source: cintelliq

David DeJoy, CEO OLEDWorks, said, "The acquisition of strategic elements of Philips OLED lighting technology, manufacturing and OEM sales channels significantly broadens our mission to deliver high performance OLED light engines to a wide range of lighting applications." David added, "The team in Aachen brings OLED expertise in production of quality high brightness panels that complements the OLED heritage and manufacturing innovation of our Rochester team. With our new, expanded team, OLEDWorks will continue to introduce exciting and novel OLED lighting modules that enable, and inspire, innovative luminaire designs. Existing customers will realize continued reliability in performance, delivery and collaboration; new customers can develop differentiated final products with the same support."
Eric Rondolat, CEO Philips Lighting, said, "In pursuance of our strategic focus we have decided to divest our OLED components development and production to a specialized partner. This will enable us to focus our business and resources on developing innovative connected lighting systems and services for professional and consumer markets. We are very pleased that with OLEDWorks we have a strong and solid partner to take OLED lighting panel production to the next level." Eric added, "Philips sees the merit of OLED as a light source for specific applications in its systems and services portfolio and will continue to apply OLEDWorks' panels in its finished products."

www.philips.com    www.lumiblade.com    www.oledworks.com   


About OLEDWorks

OLEDWorks is a leader in the development and production of affordable and innovative organic light-emitting diode lighting solutions. Founded in 2010, OLEDWorks has built its production methodology on a novel system that delivers competitive and cost-effective OLED solid state lighting panels, while simultaneously offering flexibility and responsiveness. OLEDWorks was founded by many of the original pioneers in the OLED industry, giving OLEDWorks the unique OLED production experience and insight into manufacturing strategies specifically tailored to lighting. OLEDWorks applies its more than 200 person years of collective industry experience in OLED technology to making the most advanced and cost effective solutions in OLED lighting.

Headquartered in Rochester, N.Y., where OLED was discovered, OLEDWorks is the only U.S.-based OLED light engine and panel manufacturer, and has become the dependable domestic source for OLED lighting solutions.

Source: OLEDWorks


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