Foshan Electrical & Lighting Co., Ltd. (FSL), a China-listed lighting firm has entered into a preliminary agreement to acquire a controlling stake in Yeelight, a prominent player in the smart lighting sector. The announcement (in foreign language), made on Oct. 28, 2024, marks a strategic move aimed at enhancing FSL’s position in the growing market of intelligent lighting solutions.
Under the terms of the non-binding memorandum of understanding, FSL intends to purchase over 50% of Yeelight’s equity, with specific details to be finalized following due diligence, audit, and asset assessment processes. The transaction, which is not classified as a related party transaction, is set to enable FSL to consolidate Yeelight’s financials upon completion.
Yeelight, founded in 2012, has emerged as a leading brand in the smart lighting industry. The company’s entry into the global market, alongside companies like Nanoleaf and Groove, has positioned it as a formidable competitor to Signify – Philips Hue owner – in the realm of primary and ambient lighting solutions. For the first half of 2024, Yeelight reported revenues of approximately $65.12 million.