Date: Aug 28, 2013 Author: Sarah Schmid Source: xConomy (
click here to go to the source)
Connecticut-based Revolution Lighting Technologies (NASDAQ: RVLT) is paying $15 million in cash and stock to acquire Oxford, MI-based Relume Technologies, a manufacturer of outdoor LED lighting products and smart grid control systems.
"Revolution is doing a roll-up in LED lighting, picking up the platforms it doesn't have," explains Michael Gross, managing director of Beringea's Michigan office and a Relume board member prior to the acquisition. "They didn't have an outdoor or control platform, so Relume was a good fit."
Xconomy wrote about Relume in 2010, at the time predicting it could be one of Michigan's great growth stories. Relume had attracted Beringea's attention for figuring out a way to build LED lights that last longer and perform better than others, and Beringea first invested in Relume in 2009.
Gross says Relume is the third company in Beringea's InvestMichigan Growth Capital Fund to have an exit; the other two are EcoSynthetix, which had an IPO, and Pioneer Surgical Technology, which was acquired by RTI Biologics.
Beringea, which first invested in Relume in 2009, contributed $3.2 million to lead Relume's $7 million Series D financing round announced in early 2012. Revolution Lighting is paying about $5 million in cash for the startup, with the remaining $10 million acquisition price coming in Revolution Lighting stock.
Gross is especially pleased about Relume's acquisition because it will mean increased use of the company's facility in Oxford. "There should be significant additional business going through the Oxford facility," he says, adding that there might even be accompanying local job growth.