Philips Divides into Two Companies: Lighting and HealthTech

Sept. 26, 2014 – In a move similar to JDSU’s earlier this month, the lighting, healthcare and consumer technology conglomerate Royal Philips (London) announced on Tuesday a major strategic shift in response to fundamental market changes. After 120 years in business, the company will split into two separate public companies: HealthTech and Lighting solutions, both retaining the Philips brand name. The HealthTech company will combine the Healthcare and Consumer Lifestyle divisions, in part in response to the trend of consumers becoming more proactive in the monitoring and management of their health.

The Lighting solutions business, which serves a growing €60 billion market in LED lamps, luminaires and connected lighting systems and services, will be better positioned to capitalize on market changes, which include a shift in value from individual products to systems and services. As a stand-alone company, the Lighting solutions company will benefit from being faster and more agile in its operations. The process of transitioning the Lighting solutions company into a separate legal structure will begin forthwith.