Dialight acquires light control firm

The light-emitting diode (LED) specialist Dialight has acquired the assets of Airinet, a US developer of lighting control, energy management and automated network control systems.

Colorado-based Airinet, which employs six lighting control engineers, was bought for an upfront consideration of $2.6m, with additional sums payable based on future revenue through to 2020 of up $7.4m.

All patent applications have been transferred to Dialight ownership.

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The goodwill on acquisition is expected to be $7.7m, with the final balance to be confirmed as part of the 2012 preliminary results. The acquisition is expected to be earnings accretive from 2013, at the earliest.

Group Chief Executive, Roy Burton, said: "The acquisition of controls capability will be key to further driving the value proposition and improving payback to our hazardous LED lighting customers."

Broker Peel Hunt said the acquisition marks a step forward as "until now, Dialight has favoured simple solutions (in light fixture, no remove monitoring)."

"Highlighted as useful for hazardous lighting, this key growth business can now offer a broader solution," wrote Peel Hunt analyst Andrew Shepherd-Barron.

The broker is sticking with its "buy" recommendation and 1,040p target price for Dialight.

The share price fell 1.06% to 1,024.00p by 12:56.

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