Osram said that it would form an automotive lighting company with Continental. It will target headlamps and tail lights that can be dimmed, brightened, and turned in different directions with intelligent software.
As part of the deal, Osram will transfer its automotive solid-state lighting module business to the new comp, while Continental will divest its lighting control business, which sells software that can adjust the brightness of lights based on the weather, time of day, and curvature of the road. The firm plans to start operations before the end of next year.
“This will allow us to drive forward new intelligent light functions, such as the combination of lighting and sensor technology in a module or light-based communication between the driver, other road users, and vehicle surroundings,” said Hans Joachim Schwabe, chief executive of Osram's specialty lighting business unit, in a statement.
The company, which will be called Osram Continental GmbH, is aiming to generate annual revenue of $500 million with 1,500 employees. Osram's chief executive Dirk Linzmeier and Continental's chief financial officer Harald Renner will serve as managing directors of the new business. Both companies will split profits down the middle.