In a global economy, mergers and acquisitions are common occurrences. One such recent acquisition is that of OSRAM, a German lighting company, by ams, an Austrian sensor maker. The two companies entered into a business combination agreement in July 2019, which was subsequently approved by OSRAM shareholders in November 2019.
As part of the agreement, ams acquired more than 55% of OSRAM’s shares, making it the controlling shareholder of the lighting company. The deal was valued at €4.6 billion, making it one of the largest acquisitions in the European technology industry in recent years.
The goal of the acquisition was to create a company that combined OSRAM’s expertise in lighting technology with ams’ leadership in sensor technology. The newly merged company is expected to be a leader in the fields of autonomous driving, smartphones, and other emerging technologies.
The combination of lighting and sensor technology is particularly relevant for autonomous driving. Ams had already made significant progress in developing technology for self-driving cars, while OSRAM had expertise in developing headlamps for vehicles. This combination enables the new company to provide a more comprehensive solution for autonomous driving.
The merger also created a strong presence in the smartphone market. Ams has a history of supplying Apple with sensors for its iPhones, while OSRAM supplies Apple with components for its Face ID technology. The new company is expected to be a major supplier to Apple for both lighting and sensor technology.
The business combination agreement between ams and OSRAM was not without its challenges. The acquisition was initially met with resistance from OSRAM’s management, who believed that the company was undervalued. The management also raised concerns about job losses and the potential impact on local economies. However, after several rounds of negotiations, the acquisition was approved.
Overall, the combination of ams and OSRAM is expected to create significant benefits for both companies. The merger allows them to leverage their respective strengths in lighting and sensor technology to create a leading company in the rapidly evolving technology industry. It will be interesting to see how the merger unfolds and what new technologies the combined company will develop in the coming years.