Savant specializes in full smart home systems for the luxury market. Acquiring a lighting business directly will allow it to take advantage of vertical integration and take more control over the physical equipment it installs in consumer' homes. Savant will keep the business's operations in Cleveland, where it is currently based, and will receive a long-term license to keep using the GE branding for its products.
The lighting business is GE's oldest segment, dating all the way back to the company's founding through a series of mergers with Thomas Edison's companies in the late 1880s and early 1890s. The company became a conglomerate early, investing in a wide array of technology and communications businesses. It moved toward aviation and energy and away from consumer products through the 1980s and 1990s under CEO Jack Welch. That industrial mindset lasted into the 21st century, under CEO Jeff Immelt, from 2001 through 2017.
End of an era.GE switches off light bulb business after almost 130 years