BRISBANE-based energy company ERM Power Limited (ASX:EPW) has acquired lighting company Lumaled for $3.5 million.
The deal also includes a payment of $1.5 million to the energy-efficient LED product developer - contingent on first-year earnings.
The acquisition rides off the back of ERM's strategic plan to evolve its customer solutions portfolio using smart software, data analytics and energy-efficient products, to grow its retail electricity customer base to better manage energy consumption.
ERM CEO Jon Stretch says the company was attracted to Lumaled's growth and customer satisfaction after analysing the lighting market.
"Our strategy is focused on capital efficiency, diversification, growth, and innovative customer solutions," says Stretch.
"We're delighted to now have finalised our agreement with the Lumaled team which will allow us to bring energy-efficient lighting options to our existing and new customer base across the country."
He says the acquisition ties in well with the company's plans this year, as the construction industry shifts towards energy efficient lighting.
Lumaled managing director Terry Fox says ERM's move into the LED market demonstrates why Australian energy corporations should take the technological revolution seriously.
"We've spent time with the ERM Power team and they have aspirations for this business which will support its national growth," says Fox.
"There are multiple benefits of LEDs and we've been at the forefront of this rapidly growing technological change.
"We're very excited to be a part of ERM Power to take this technology to a broader national base."