As part of the three-pillar strategy the company announced last November, Osram, a global lighting manufacturer, is continuing to advance the position of its Specialty Lighting (SP) business. The company has agreed to acquire Novità Technologies, a U.S. manufacturer of automotive LED modules,which are used particularly in tail lights, fog lights and daytime-running lights. The acquisition will immediately be margin-accretive in the SP segment.

Novità Technologies, a successful company based in Hendersonville, Tennessee, has annual sales of more than 40 million euros (approximately $44.07 million USD), with around 100 employees and ships mainly to headlight and tail light manufacturers in the United States. Both parties have agreed not to divulge any financial details of the transaction, which is planned to be completed 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 SP business unit.

As technological changes continue to take place around LEDs, the requirements of manufacturers in the automotive industry also are changing with regard to the design and functionality of light. As a result, the company says there is increasing demand for complete systems and modules rather than for the pure light sources. A successful example is the Ford F-150, for which Osram has developed a complete LED-based front lighting system, comprising low and high beams, turn indicators, parking lights and control modules.

By purchasing Novità Technologies, Osram is complementing its successful LED module business with regard to the tail light and forward auxiliary lighting, such as fog lights and daytime running lights.

The global market for LED modules for front and rear lights is forecast to increase by an average of 20 percent per year by 2020. Novità Technologies is well-positioned in this sector, particularly in the U.S., and Orsam says it is an excellent addition to its company in terms of both the regional market and the LED automotive portfolio for project and system business. The company, which was founded in 2007 as an asset management buyout, has recorded rapid and successful growth in the past three years and has a high level of engineering and manufacturing know-how specifically in the LED module business.