"With this acquisition, we want to open up new product fields and expand our existing portfolio at a strategically important point," says Trumpf president Nicola Leibinger-Kammüller.

Lars Grünert, chief financial officer and member of the group management board with responsibility for the new Trumpf product field, adds: "Philips Photonics employs a large number of very good developers who will strengthen our R&D effort in the long term. Together we want to further develop the Photonics division."

Joseph Pankert, business leader at Philips Photonics, says: “Since our foundation in 2000 we have grown strongly. More than half a billion smartphones worldwide are equipped with our laser diode technology. We are very excited to become part of Trumpf as it will ensure that the division can continue to grow within a highly innovative company moving forwards.”

Aside from its headquartered in Ulm, where the laser diodes are manufactured, further Philips Photonics’ facilities include those in Aachen, Germany, Eindhoven in the Netherlands, and sales offices in Shenzen, Shanghai and Qingdao in China.

Both companies have agreed not to disclose the purchase price. The transaction is expected to be completed in the second quarter of 2019, subject to approval by the authorities.