Horizontal mergers and acquisitions into the 2014 LED display industry theme

In recent years, the LED display industry, Matthew effect is more obvious, big rival, the stronger the stronger. An industry, two kinds of scenery. Here, large companies get a large single, gathering talent pool channels; there, a small company to survive the difficult times, just waiting to stay down and throw a lot of employees and suppliers. In the process of polarization, the merger and acquisition of enterprises under the guidance of capital has gradually become an important driving force.

In 2014, all listed companies entered the arms race. In addition to Abison, alto Electronics (both in acquisition), there are other heavyweight acquisition occurred. According to the big screen performance standings incomplete statistics, in 2014 the LED display industry a total of 8 mergers and acquisitions, see table 1.

Table 1:2014 acquisition of LED display industry

Source: public information, the big screen performance ranking

Analysis of mergers and acquisitions between enterprises in 2014, there are three obvious characteristics.

Horizontal mergers and acquisitions

According to the object of mergers and acquisitions, mergers and acquisitions are divided into three types of horizontal mergers and acquisitions and vertical mergers and acquisitions. Horizontal acquisition refers to the acquisition of the same industry or industry, the production or sale of similar products between enterprises. For example, Chau Ming technology acquisition Lampson photoelectric acquisition, yishida, Lehman photoelectric acquisition apexls is a typical horizontal acquisition. Vertical acquisition refers to the production process or business links closely related to the acquisition of the company. Elec-Tech has acquired retop vertical acquisition to display, NVC, the most typical Weimei spectacular. M & A is the merger between enterprises in different industries, that is, usually referred to as cross-border. OCT Konka video acquisition, the acquisition of hailunzhe giant Albert can be classified in the mixed in mergers and acquisitions. Compared to 2013, the horizontal mergers and acquisitions in 2014 is very dense, indicating that the industry has changed from incremental competition into stock competition.

Table 2:2013 LED display industry mergers and acquisitions

Source: public information, the big screen performance ranking

By contrast, it can be found that the merger and acquisition in 2013 focused on the two categories of mergers and acquisitions and vertical mergers and acquisitions. In addition to the acquisition of XinDa photoelectric Puguang, and there is no merger between peers behavior. In 2014, mergers and acquisitions between peers accounted for a large proportion of the performance of the scale of enterprises in the acquisition of some of the dominant segments of the enterprise. Chau Ming technology acquisition Lampson, photoelectric acquisition yishida industry, two "one billion" LED display on the aircraft carrier formation. Riyadh recently acquired Jin Lixiang, can also be seen as the market trend in the continuation of 2015. Performance standings judgment in the next year, I believe there will be more cases of horizontal mergers and acquisitions, in other words, the concentration of the industry will be greatly improved.

LED lighting cross-border mergers and acquisitions of listed companies LED display

In recent years, in addition to Chau Ming technology, Shanghai think twice, most of the LED display corporate restructuring lighting failed. But it is undeniable that, after many years of development of LED display industry, some enterprises in the specific region and industry channel resources, the project is still based on the sale of LED lighting companies are very valuable. LED display and LED engineering lighting products sales model is similar to the high degree of channel overlap, synergistic effect is obvious. So, lost with the traditional lighting competition in the distribution channels, LED lighting companies try to use LED display engineering channel advantage overtaking.

In the Fushun snow Wright photoelectric acquisition, Wright is valued in the Fujian regional government, banking, telecommunications, transportation and other industries customer resources and engineering qualification, hoping to open the market for outdoor lighting industries and more broad. But by holding KingSun caiyida, including the LED street lamp can improve business in the north of the sales channels, can help foreign caiyida in Indonesia's foreign trade resources, Southeast Asia market. Performance list believes that the size of the channel is not obvious but the advantages of regional LED display companies will become scarce resources, LED lighting listed companies have a higher acquisition value.

The emergence of technical monopoly for the purpose of acquisition

In December 30, 2014, a subsidiary of Hongkong leyard Riyadh and Holland DIMENCO company signed the relevant agreement, the proposed $99 thousand subscription of shares of Dimenco9%. In addition, Riyadh and DIMENCO signed a "licensing agreement", the agreement is valid for 10 years. The agreement provides that Dimenco shall not transfer, authorize or provide any third dimensional technology based on LED display. It is understood that the Holland DIMENCO company is a spin off from PHILPS 3D technology solutions company, with columnar lens technology in the field of naked eye 3D has a high visibility and leading position. Riyadh released in April 11th at the Beijing InfoComm exhibition 110 "naked eye 3D LED TV, the company is research and development association.

It can be seen that the intention of Riyadh Dimenco shares is very obvious. Naked eye 3D in the future will have broad prospects in advertising, cinema, home and other fields. By participating in Dimenco, not only to speed up the pace of research and development in the field of naked eye, but also to achieve the purpose of technical monopoly, set a higher threshold for entry into the 3D.

Investment in technology, which is not seen in the LED display industry. Perhaps, with the naked eye 3D, outdoor small spacing, smart display and creative display technology trends are becoming increasingly apparent, such cases will be more and more.

2014 industry mergers and acquisitions presented some features, will be in 2015