Germany-based Trumpf (www.trumpf.com), which provides manufacturing solutions in the fields of machine tools, laser technology, electronics and Industry 4.0, is acquiring Photonics GmbH from Philips.

Laser diodes from Ulm-based Philips Photonics, which employs around 280 people, are used in many applications, including smartphones, digital data transmission and sensors for autonomous driving.

Through this acquisition, Trumpf will expand its access to fast-growing markets in the photonics and digital-product sectors.

Lars Grünert, Trumpf’s chief financial officer, said: “Philips Photonics employs a large number of very good developers, who have opened up new areas of photonics and who will strengthen our R&D team.”

Joseph Pankert, Philips Photonics business leader, said: “We have grown strongly since our foundation in 2000, and more than half a billion cell phones world-wide are equipped with our laser diode technology.

"We are very excited to become part of Trumpf; this will ensure that the division can continue to grow within a highly innovative company in the future.”

Philips Photonics laser diodes are manufactured in a high-tech facility in Ulm. The company also has facilities in Aachen and Eindhoven, plus sales offices in Shenzen, Shanghai and Qingdao.

The transaction should be completed in the second quarter of 2019, subject to regulatory approval.