Signify promotes accelerated growth of plant lighting business

Signify acquired Fluence in Austin, Texas, without cash and debt. The acquisition will promote Signify’s accelerated growth in its global plant lighting business, and help Signify to deepen the promising North American plant lighting market.

This acquisition is in line with Signify’s market expansion strategy. While cultivating high-potential markets, it uses plant lighting technology to help customers in the plantation industry reduce resource consumption and increase production, thereby fulfilling its promise to increase food supply. We expect the annual growth rate of the global plant lighting market to exceed 20%, reaching 1.6 billion euros in 2024.

Through this acquisition, Signify will integrate Fluence's plant lighting technology and improve existing knowledge and expertise. These technologies are aimed at a variety of crops and bring rapid business growth to Fluence. one of them is the lighting technology applied to special cash crops. This technology is widely used in Canada and many states in the United States, and related businesses have become Fluence's main source of income. In addition, Fluence has more than 140 approved or pending patents, focusing on areas such as light quality, thermal management, and installation methods. Currently, Fluence's business focus is in North America.

"We are very pleased to announce the upcoming acquisition of Fluence to strengthen the existing plant lighting business. This is one of the company's main growth engines. This acquisition further strengthens the important strategic significance of the North American market for our business development." President of the Signify Digital Solutions Business Unit, Harsh Chitale said, "We welcome and look forward to the joining of the Fluence team. Fluence has won market recognition with its innovative lighting technology and solid promotion strategy. While firmly rooting in North America, it will rapidly develop the European market. We will work hand in hand to provide more customers with high-quality plant lighting products."

"Since the establishment of Fluence, we have always taken improving the interaction between light and organisms and promoting global healthy and sustainable development as our sole mission. Our lighting solutions and Signify’s product portfolio have joined forces to provide the advanced plant lighting technology for customers in the global planting industry." Fluence CEO David Cohen said, "After the acquisition is completed, we will follow a common path, learn from each other, and continue to promote product innovation. We look forward to joining the Signify family."

Fluence currently has more than 200 employees. In the past 12 months (October 2020 to September 2021), the company's revenue was US$141 million (approximately €124 million). Fluence will join Signify's Digital Solutions Division and become part of the agricultural lighting team.

The acquisition is expected to be completed in the first half of 2022, depending on the regulatory approval and other factors.

Signify and Fluence respect and abide by local laws and regulations, and only provide plant lighting products related to special crops to licensed areas, and resolutely do not provide related services to unlicensed areas.