Investors Digest Revolution Lighting Technologies Inc (NASDAQ:RVLT) Buyout

Posted by Lynn Eisler March 12, 2014 0 Comment 1064 views

Revolution Lighting Technologies Inc (NASDAQ:RVLT) post its announcement on 10th March that it would be buying out Value Lighting Inc, the investors trooped into the stock massively, sending the company valuation skyrocketing upwards by close to 20 percent in the following day’s trading. Some of these gains were reversed during yesterday’s trading as investors took a breather and tried to take stock of the significance of the acquisition to Stamford based stock.

Value Lighting Inc Acquisition A Value Buy

In its press note announcing the buyout, Revolution Lighting Technologies Inc (NASDAQ:RVLT) had indicated that its market presence and specifically its distribution network is going to be tremendously strengthened by the acquisition. It also hopes to gain a foot hold in the difficult to break in multifamily house vertical, and would incrementally add to its annual revenue significantly. It has gone on to estimate that its 2014 combined revenue would breach the $110 million mark as a direct result of the new business it would be able to bring to the table. The bought out firm has reported revenue of close to $43 million in the past year, while its revenue guidance for the current year had stood at $55 million.

Payment Terms

The purchase terms specify that Revolution Lighting Technologies Inc (NASDAQ:RVLT) would be paying $35.6 million to buy out the 100% equity of Value Lighting Inc. In addition it will taking on to its books the $3.5 million debt that the smaller company had accumulated.

CEO Speak

Expressing his happiness at the smooth buyout process Revolution Lighting Technologies Inc (NASDAQ:RVLT) Chairman and Chief Executive Officer Robert V. LaPenta has been quoted to have said that, “This is an exciting and highly complementary acquisition that will allow Revolution Lighting to penetrate new markets, including the fast growing multifamily residential housing sector, and further accelerate our overall growth as a company. Value Lighting’s existing and new build customers are seeking to expand into LED lighting solutions.”

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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