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May 27, 2020, 9:58 a.m. EDT

GE's stock surges after deal to sell GE Lighting business to Savant Systems

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By Tomi Kilgore

Shares of General Electric Co. /zigman2/quotes/208495069/composite GE +0.99% jumped 6.5% in morning trading Wednesday, after the industrial conglomerate announced a deal to sell its nearly 130-year old GE Lighting business to privately held home control and automation company Savant Systems Inc. The Wall Street Journal reported that the deal was valued at around $250 million. The deal, which is expected to close in mid-2020, includes a long-term licensing deal for Savant to use the GE brand. GE Lighting will remain headquartered in Ohio, and its more than 700 employees will transfer to Massachusetts-based Savant after the deal closes. "Today's transaction is another important step in the transformation of GE into a more focused industrial company," said GE Chief Executive Larry Culp. "Together with Savant, GE Lighting will continue its legacy of innovation, while we at GE will continue to advance the infrastructure technologies that are core to our company and draw on the roots of our founder, Thomas Edison." GE's stock has run up 31.9% since closing at a 29-year low on May 15 through Tuesday, but has still lost 35.1% year to date, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.34% has declined 11.6% this year.

/zigman2/quotes/208495069/composite
US : U.S.: NYSE
$ 6.11
+0.06 +0.99%
Volume: 79.78M
Sept. 25, 2020 4:00p
P/E Ratio
14.94
Dividend Yield
0.65%
Market Cap
$53.48 billion
Rev. per Employee
$429,735
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,173.96
+358.52 +1.34%
Volume: 391.73M
Sept. 25, 2020 5:06p
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