Through this transaction, Barco strengthens its position as a leading provider of LED, projection, image processing and lighting products. This comprehensive product portfolio allows Barco to serve customers with different budget levels in the media and entertainment market. Barco will not book any goodwill on this transaction.
"This expands Barco's portfolio for the mid-range markets," Eric Van Zele, Barco's president and CEO, comments. "Element Labs' products in these markets have proven their worth on many occasions and perfectly complement Barco's more high-end oriented market portfolio."
Paul Matthijs, VP of Barco's Video & Lighting Solutions business, continues, "Element Labs' products have added a spectacular dimension to numerous concerts, events, corporate headquarters and flagship stores around the world. This transaction will help to accelerate the turnaround which is under way in our Video & Lighting activities, by enabling Barco to address a wider segment of the market, and further leveraging Barco's existing sales, marketing, and service capabilities."
With immediate effect, the name 'Element Labs' ceases to exist. Structured as an asset sales transaction, Barco obtains all product designs, rights and intellectual property of Element Labs, without assuming the liabilities of the former EL-company. As of today, the core team of Element Labs in Santa Clara, California, will function as Barco's competence centre for creative LED solutions, whereas Barco Kuurne (Belgium) will remain the competence centre for tiled LED solutions. Barco will announce its new mid-range LED products in the coming months.
(Jim Evans)
