GP Technologies, the newly formed technology unit of electronic components group Gold Peak Industries (Holdings), has acquired a 51 per cent stake in big-screen video-display maker Lighthouse Technologies for HK$136 million. The acquisition will boost the Gold Peak group's stake in Lighthouse to 71 per cent. It holds the other 20 per cent through associate Clipsal Industries (Holdings). Lighthouse, which makes video displays featured mainly in major events such as sports and concerts, uses the high-brightness light emitting diode (HB LED) technology. It claims to have about 5.5 per cent of the global market for big video screens. 'We are very bullish about the HB LED market. As brightness of the LEDs improves and component prices go down, more applications have become commercially viable,' said Gold Peak chairman Victor Lo Chung-wing. Lighthouse chief executive Tony van de Ven said the home-grown firm had formed preferential supply agreements with two semiconductor technology firms - United States-based Cree and Germany-based Osram, as well as Britain's broadcasting-equipment maker Snell & Willcox. He said the big-screen market had six major global players - based in the US, Japan, Canada, Taiwan and Germany - with market shares ranging from 5 per cent to 15 per cent. The market is projected to grow to US$500 million this year. 'The most exciting growth area is the electronic billboard advertising market, as the latest technologies have allowed ad messages to be changed in real-time, making time-sensitive advertising possible,' Mr van de Ven said. Gold Peak will pay HK$34 million cash and issue 52 million new Gold Peak shares at HK$1.955 each - the same as the closing price on Monday - to fund the acquisition. The consideration represents about 12 times the company's projected net profit of HK$22.2 million for the year to December 31, a figure that has been guaranteed by Lighthouse to Gold Peak. Established in January 1998, Lighthouse recorded a net profit last year of about 3 per cent. Turnover is expected to grow by about 45 per cent this year from about HK$186 million last year.