Koninklijke Philips Electronics announced early Tuesday morning it was buying Boston-based Color Kinetics for $34 a share in cash, a 14% premium to Monday's closing price of $29.79 The offer represents a 131% premium to Color Kinetics 52-week low of $14.70. Color Kinetics CEO Bill Sims believes "joining Philips...is in the best interest of our shareholders, customers, partners, and employees." The deal gives Philips, the world's largest lighting company, an 'in' to the American professional LED market, of which Color Kinetics was a part. Philips Lighting CEO Theo Van Deursen said the price being offered for Color Kinetics was "very fair." The deal is expected to close in the third quarter.
Sources: Press Release, Reuters, AP, MarketWatch
Commentary: Light-Emitting Diodes Stocks Get Some Respect • The Nexxus of the LED Universe • Cree & Color Kinetics: LED Kills the Incandescent Bulb Star
Stocks/ETFs to watch: Koninklijke Philips Electronics NV (PHG), Color Kinetics Incorporated (CLRK). Competitors: General Electric (GE), Sony (SNE), Matsushita Electric (MC)
Conference call transcripts: Royal Philips Electronics Q1 2007 Earnings Call Transcript
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