France Lumibird announces blockbuster acquisition! Bet on high-power semiconductors and fiber lasers

Lumibird, a French photonics company, announced on May 16 that it had signed a deal with Prima Industrie, an Italian maker of parts for laser systems. It acquired the business assets of its subsidiary Convergent Photonics in Turin, Italy and Prima Industrie North America in Boston, the United States. The two sides expect the deal to close in the second half of 2023, subject to regulatory approvals in Italy and the United States.

Specifically, after the acquisition, Lumibird will be incorporated into Prima Industrie's Convergent Photonics subsidiary in Turin, Italy, and Prima Industrie North America, which includes its optical assembly and diode assembly operations in Boston, USA.

(Photo credit: Convergent Photonics)

The acquisition will give Lumibird 80 new employees in Italy and the US. After the deal closes, the additional business is expected to help Lumibird reach its annual sales target of 250 million euros this year, up from 191 million euros in 2022.

Lumibird said the acquisition would have dual strategic benefits by giving it a strategic edge in high-power semiconductors and fiber lasers, which would open up new market segment opportunities for its business. As the latest step in Lumibird Group's investment strategy, the acquisition will enable Lumibird to further strengthen its position in the laser and optoelectronics sectors.

Marc Le Flohic, Chairman and Chief Executive Officer of Lumibird, said the acquisition enables the group to vertically integrate key semiconductor technologies, strengthen its position and presence in laser technology in the European market, and diversify into high-growth markets to further open up new market segments. "This will allow Lumibird to become independent in the supply of key components and will give it greater ability to innovate in materials and components." "This acquisition strengthens several of our key technology pillars and fits perfectly with Lumibird's vertical and sovereign strategy," he said.

At present, Lumibird Group's two major sources of performance are divided into optoelectronics business division and medical business division. In the future, Convergent's long-term medical footprint will also give Lumibird access to emerging laser applications in urology and gynecology, greatly expanding its current product range beyond its original focus on ophthalmology.

Giovanni Negri, chief executive of Prima Industrie, added: "Having been successfully active in the development and production of laser sources for many years, Prima Industrie has now decided to spin off its laser source business unit, Convergent Photonics, and focus on its core business in sheet metal machinery and equipment. We are delighted to have sold to an industry name such as Lumibird, which will no doubt enable Convergent to realize all of its great potential based on a high level of technical knowledge."

Convergent is a high power industrial laser solutions provider, originally the industrial laser division of United Technology, which was acquired by Prima Industrie in 2000 and renamed "Convergent Photonics" in 2014.

Convergent Photonics has more than 50 years of experience in the design and manufacture of semiconductor lasers, laser diode packages, and high-power fiber lasers for the medical field (urology, surgery, etc.). The company began developing medical lasers in 2019 and currently offers a range of industrial and medical light sources, including high-power diode emitters, as well as diode-based blue lasers with operating wavelengths of 450 nanometers. In 2022, the company's total revenue/sales reached 15 million euros.

And in August last year Prima Industrie, which specialise in laser and sheet metal processing machines and systems, was bought by Femto Technologies (controlled by Alpha and Peninsula, two private equity funds), which owns just over 50.1 per cent. The transaction is valued at more than 129 million euros ($130.17 million) and the company announced it would delist from European markets. Separately, Prima Industrie completed the spin-off of its additive manufacturing business unit in April 2022 and subsequently made a capital increase bet on 3D New Technologies. In December 2022, Giovanni Negri was appointed as the company's new CEO.

About the Lumibird

Lumibird is one of the world's leading laser specialists. With more than 50 years of expertise in solid-state lasers, laser diode and fiber laser technologies, Lumibird designs, manufactures and sells high-performance lasers for the scientific (laboratory and university), industrial (manufacturing, defense, lidar sensors) and medical (ophthalmology, ultrasound diagnostics) markets.

About Prima industries

The Prima industries Group is a leading global leader in the development, manufacturing and market of laser systems, focusing on providing solutions for industrial applications, sheet metal processing machinery as well as industrial electronics, laser sources and additive manufacturing. Its parent company, Prima industries s.p.a., was listed on the Italian Stock Exchange in 1999. The Group employs approximately 1,700 people and has production sites in Italy, Finland, the United States and China, as well as direct sales and after-sales service outlets around the world. With more than 40 years of experience, the Group has sold and installed approximately 14,000 machines in more than 80 countries.

Source: ofweek