As part of its strategy for its specialty lighting business, Osram has agreed to acquire Novità Technologies, a U.S. producer of automotive LED modules. Osram said that the acquisition is part of the company’s plan to increase the focus of the automotive segment of its specialty lighting business on LED-based products.
Novità’s automotive LED modules are used particularly in tail lights, fog lights and daytime running lights. The successful company with about 100 employees based in Hendersonville, Tennessee boasts annual sales of over 40 million euros (about $4.4 million). Osram contends that Novità Technologies is well positioned in the automotive lighting sector, particularly in the USA and says that the acquisition will immediately add to the revenues of its Specialty Lighting segment.
Novita ships primarily to headlight and tail light producers in the United States. Novità indicated that its engineers have experience working with Tier 1 suppliers and OEMs to optimize and refine product performance. Both Novità and Osram have agreed not to divulge any financial details of the transaction, which they plan to complete by October 2016.
“The purchase of Novità Technologies is an outstanding addition to our project and system business and at the same time strengthens our position on the important U.S. market,” said Hans-Joachim Schwabe, CEO of Osram’s Specialty Lighting business unit.
Osram points out the LED technology continues to change, and the LEDs the requirements of automotive industry manufacturers are also changing what they need from the design and functionality of light. The auto industry is increasingly seeking complete LED systems and modules as opposed to just the light sources. Osram points to the Ford F-150 as a successful example and says that for the F-150 it developed a complete LED-based front lighting system including low and high beam, turn indicators, parking light, and the control module. Osram noted that its purchase of Novità Technologies adds to its product offerings of LED-based tail light and forward auxiliary lighting such as fog lights and daytime running lights.