Trumpf establishes new business division after Photonics acquisition from Philips.

Laser manufacturer Trumpf has established a new business division, 'Trumpf Photonic Components', after its acquisition of Photonics from Philips, was completed in April.

The new business division will be headed by Lutz Aschke, CFO of laser technology at Trumpf since 2016, and Joseph Pankert, general manager of Photonics since 2009.

Photonics has 280 employees and is headquartered in Ulm, Germany, where it manufactures laser diodes in a dedicated production plant. Now, it is set to continue growing as part of Trumpf.

The acquisition will enable Trumpf to gain access to a new market segment that will complement its existing high-power diode laser business. Photonics' laser diodes are used in smartphones, in digital data transfer applications and in sensors for autonomous driving.

Trumpf has also recently placed a promissory loan note for [euro]250 million. The proceeds will provide long-term financing for the company's overall development and, in particular, help support its operating growth. The company planned to place a loan volume of [euro]150 million, however, exceptionally strong demand from investors and a heavily oversubscribed order book prompted Trumpf to scale up the loan amount.