10 October 2011

Osram acquires software firm Encelium for LED lighting control and management

Osram AG of Munich, Germany (a subsidiary of Siemens AG and one of the world’s two leading light manufacturers) has signed an agreement with Baltimore-based investment firm Townsend Ventures LLC to increase its stake in Encelium Technologies of Teaneck, NJ, USA from 15% to 100%.

Encelium is a software technology development firm focused on lighting control and energy management systems for commercial and industrial buildings that employs about 70 staff in the USA and Canada. Osram believes that the acquisition will enhance its position in two key global growth markets: LED-based technologies and light management systems (LMS). Encelium complements Osram’s General Lighting portfolio of energy-efficient lighting products and solutions.

Osram reckons that Encelium’s expertise and distribution network will extend its reach into the energy-efficiency business and position it for further LED expansion. Encelium will become part of the Osram General Lighting – LMS organization.

“The acquisition of Encelium, and its cutting edge lighting control software for commercial buildings, is the next logical step for Osram in becoming one of the leading LED lighting solutions providers,” says Klaus-Günter Vennemann, Osram’s CEO of General Lighting. “Lighting is responsible for 20% of electrical energy consumption globally. In the US it accounts for more than 30% of the commercial building’s electrical energy consumption,” he adds. “With an ever-increasing demand for improved energy efficiency of commercial buildings, this acquisition enables us to offer smart LMS options to our customers worldwide that provide the right light, in the right amount, at the right place, at the right time.”

Osram says that light management systems is a key growth market as lighting controls support the transition of standard lighting products to networked, intelligent and value-added solutions. According to a recent study by McKinsey, the market for lighting systems control components is about 2bn Euros, and is expected to double by 2016 and triple by 2020.

“Osram leadership in LED lighting solutions, from modules, luminaires and controls, to installation and maintenance services, coupled with Encelium’s software technology capabilities, supports an aggressive growth strategy and further penetration into both existing and new markets,” comments Encelium’s CEO Anthony Marano.

The growth in light management systems is largely a result of its energy-saving capabilities and quality-of-life improvements. Solutions combining highly efficient lighting products with advanced LMS structures can yield energy savings of up to 80%. In addition to energy and environmental benefits, light management systems deliver quality of light that can shape the quality of life, says Osram, with new methods for dimming, color control and mood enhancing lighting.

Tags: Osram LEDs

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