SARASOTA, Fla., April 22, 2013 /PRNewswire/ -- Evolucia Inc., (OTCBB &OTCQB: ILED), a global leader in the development and commercialization of high performance LED (light emitting diode) lighting systems, announced today that it has entered into a Letter of Intent to acquire all of the assets of Affineon Digital Lighting, a private LED fixture and control system company located in Coral Springs, Florida that posted approximately $4 million in 2012 revenues.
Under the agreement, Evolucia will purchase the assets of Affineon for a price not to exceed $12 million in cash only. Quarterly payments by Evolucia will begin only after the 2nd consecutive quarter of positive operating cash flow by Evolucia, and will be based upon a formula that combines quarterly profit from the sales of Affineon products with the overall profitability of Evolucia during each quarter. Evolucia expects to close the acquisition of Affineon, which is subject to the approval of the board of directors of Evolucia and the consummation of a definitive purchase and sale agreement, during the 3rd quarter of 2013, and has already secured the exclusive rights to the Affineon products and engineering capabilities.
This acquisition allows Evolucia to immediately expand its catalog of LED lighting products to include parking and area, high bay, panel, canopy and other popular applications. All of the new LED products provide best-in-class thermal management, optics, light quality and aesthetics, and come with a ten (10) year warranty. This acquisition also strengthens and complements Evolucia's existing LED business as it facilitates new channels of distribution, and adds proven expertise in important areas, including product design, product commercialization, manufacturing and materials sourcing.
According to Mel Interiano, CEO of Evolucia, "This acquisition will provide us with several important components for our accelerated growth, including rapid engineering of LED products, a complementary product line that allows our sales network to capture additional distribution opportunities in both the interior and exterior markets, an expanded independent sales rep network and a customer base that includes Fortune 500 companies, such as CVS and Disney, as well as the federal government."
Woody Smith, CEO of Affineon Lighting, stated, "This merger will integrate the best light distribution technology in the industry, 'Aimed Optics', and best-in-class thermal and electronics technology, a combination that will ensure the delivery of durable, high performance LED lighting products for years to come. In addition, the mass manufacturing capabilities that Evolucia has developed through its partnership with Leader Electronics enhances the value of our overall LED lighting offering by leveling the playing field with larger tier 1 and tier 2 lighting companies."
Woody Smith has been appointed as Chief Technology Officer of Evolucia Inc., and reports directly to CEO Mel Interiano.
About Evolucia Inc.
Evolucia Inc. is an industry pioneer in the design, engineering, manufacture and marketing of high performance LED lighting systems to the global lighting markets. Evolucia received the United States Department of Energy's highest award for lighting within the LED category, and has installed thousands of its fixtures at military bases, universities, municipalities, and large commercial entities. Evolucia's LED lighting products are sold under the brand, Evolucia Lighting (www.evolucialighting.com).
All Evolucia products offer highly energy efficient, durable, commercial-grade LED lighting for both indoor and outdoor applications. The company's award winning cobra head and shoe box fixtures employ Evolucia's proprietary Aimed Optics™ technology, which increases light levels and visibility by strategically directing light to the target area. Evolucia fixtures require 50%-80% less energy than traditional lighting, and last for approximately 12 years without maintenance.
Some of the statements made by Evolucia in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Evolucia believes that its primary risk factors include, but are not limited to: development and maintenance of strategic acquisitions; domestic and international acceptance of our product lines; defending our intellectual property and proprietary rights; development of new products and services that meet customer demands and generate acceptable margins; successfully completing commercial testing of new technologies and systems to support new products and services; and attracting and retaining qualified management and other personnel. Additional information concerning these and other important factors can be found within Evolucia's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.
SOURCE Evolucia Inc.