GE to Sell its 130-Yr-Old Lighting Biz to Savant Systems

American multinational conglomerate General Electric (GE) on Wednesday said that it has signed a definitive agreement to sell its 130-year-old Lighting business, GE Lighting, to Savant Systems, a leading player in the smart home space. However, the financial details of the transaction were not disclosed by the company.

For many years the company was looking for a buyer for its struggling business founded by Thomas Edison.

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Weighed down by higher debt and poor performance of businesses, the deal marks the dismantling of GE empire. Previously also the company unloaded its other businesses like microwaves, locomotives, washing machines etc.

Commenting on the deal, H. Lawrence Culp, Jr., chairman and CEO of GE, said that, “today’s transaction is another important step in the transformation of GE into a more focused industrial company. Our GE Lighting colleagues will join a fast-growing leader in home automation that shares their passion for bringing the future to light. Together with Savant, GE Lighting will continue its legacy of innovation, while we at GE will continue to advance the infrastructure technologies that are core to our company and draw on the roots of our founder, Thomas Edison.”

Currently, GE Lighting’s portfolio includes leading home lighting and innovative smart home solutions. Post-acquisition by Savant Systems, the company headquarter will remain in Cleveland, Ohio, and it’s over 700 employees will transfer to Savant upon completion of the transaction.

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“We are committed to ensuring that GE Lighting’s long history of industry leadership continues while bringing exceptional value and reliability to retail partners and consumers as the number one intelligent lighting company worldwide. Never before has connectivity, security, intelligent lighting and entertainment, all enjoyed within the comforts of home, been more top of mind with consumers,” said Robert Madonna, founder and CEO of Savant.

This acquisition is expected to broaden the market reach of the two companies. Also, the proposed transaction includes a long-term licensing agreement for use of the GE brand and UBS Investment Bank acted as lead financial advisor to GE.

Meanwhile, the transaction is subject to customary closing conditions and is expected to close in mid-2020.