(Yicai Global) May 15 -- Philips Lighting, part of Dutch multinational Koninklijke Philips NV, has agreed to purchase a Chinese luminaire and control system manufacturer as it looks to tap the nation's growing urban lighting market.

The company will acquire Shenzhen LiteMagic Technologies Co. for an undisclosed price, it said in a statement yesterday. It expects to close the deal in the third quarter to tackle the mid-segment of the Chinese market.

"The acquisition is in line with our global strategy to grow both organically and through selected acquisitions," said Harsh Chitale, head of Philips Lighting's Business Group Professional. "Urban lighting is a growing and attractive market and with the acquisition of LiteMagic Technologies we are strengthening our leadership position."

LiteMagic made around EUR32 million (USD38 million) in annual sales last year, the statement added, saying the target's broad and cost-competitive portfolio complements Philips' own. LiteMagic will continue to operate under its own brand name in China.

"LiteMagic Technologies has a strong foothold in many cities in China and significant expertise in urban lighting," added John Wang, head of the buyer's Market Group. "Together we will bring our complementary and comprehensive portfolio of products, systems and services to the growing number of cities in China looking to turn buildings, bridges and boulevards into beautiful public spaces at night."

Editor: James Boynton