EAST CLEVELAND, Ohio — On Wednesday, GE reached an agreement to sell GE Lighting to Savant Systems Inc., a Massachusetts-based company in the smart home business, according to a joint news release.
“Staying in Cleveland means that we’ll be able to continue our commitment to supporting to area through out community partnerships, volunteering, and so on and so forth, and our employees feel very passionate about those things," said Ben Sabol, director of communications at GE Lighting.
The proposed transaction includes a long-term licensing agreement for use of the GE brand. Upon closing of the deal, GE Lighting headquarters, 1975 Noble Road, will remain at Nela Park, and the leadership team and its more than 700 employees will work for Savant.
“Today’s transaction is another important step in the transformation of GE into a more focused industrial company,” said GE Chairman and CEO H. Lawrence Culp Jr, in a news release. “Our GE Lighting colleagues will join a fast-growing leader in home automation that shares their passion for bringing the future to light. Together with Savant, GE Lighting will continue its legacy of innovation, while we at GE will continue to advance the infrastructure technologies that are core to our company and draw on the roots of our founder, Thomas Edison.”
GE Lighting’s portfolio includes home lighting and smart home solutions. While the acquisition of GE Lighting will broaden the market reach for both companies, Savant Systems said it will remain focused on the professional installation channel for home.
“Savant’s mission from the start has been to create the number one smart home brand in the world, and I am confident that the acquisition of GE Lighting has moved us significantly toward that ultimate goal,” said Savant Founder Robert Madonna, in a news release. “We are committed to ensuring that GE Lighting’s long history of industry leadership continues, while bringing exceptional value and reliability to retail partners and consumers as the number one intelligent lighting company worldwide. Never before has connectivity, security, intelligent lighting and entertainment, all enjoyed within the comforts of home, been more top of mind with consumers.”
The financial details of the acquisition were not released.
