Lumibird Divests its Medical Division to IPG Photonics for €300M
French group Lumibird has announced entering exclusive negotiations to sell its Medical division to American company IPG Photonics Corporation. The transaction, valued at €300M, is expected to be finalized in the fourth quarter of 2026 and would mark a major strategic shift for Lumibird, transitioning to a company solely focused on photonics.
A Sale Valued at €300M, Additional Earn-out Possible
Lumibird announced on July 16, 2026, that it had entered exclusive negotiations to sell its Medical division to IPG Photonics Corporation for a company value of €300M. An additional earn-out payment of up to €50M could be added, contingent on the division's performance in 2026 and 2027. This earn-out would be structured in two parts: the first in 2026, based on revenue thresholds (between €119M and €132.5M) with an EBITDA-related adjustment, and the second in 2027, based on separate thresholds (between €134.125M and €141M).
This transaction would be a decisive step in Lumibird's history. According to the group, both divisions have reached a critical size and now require distinct strategic directions and increased investment capacities tailored to their respective markets.
Photonics Division: €113.4M in Revenue, Over 600 Employees
Lumibird's Photonics division, which would remain within the group after the sale, recorded a revenue of €113.4M in 2025 and employs over 600 staff. It designs and produces components, lasers, and systems for markets in defense and space, environmental, surveying and security, industrial and scientific sectors, as well as certain applications in medical technologies.
Following the transaction, Lumibird would become one of the leading independent photonics companies in Europe. The group plans to enhance investments in research and development, industrial capabilities, and international expansion, and to accelerate its presence in markets where photonics is increasingly seen as strategically important.
Completion Expected in the Fourth Quarter of 2026
The transaction is expected to be completed during the fourth quarter of 2026, subject to the consultation of the staff representative bodies and the fulfillment of usual suspensive conditions, including the approval by the AMF of a non-requirement to file a public withdrawal offer under article 236-6 of the general regulations. The proceeds from the sale would enable Lumibird to strengthen its balance sheet, significantly reduce its debt, and free up additional resources for strategic investments, while providing greater flexibility to seize future opportunities.
