Updated since 9:04am

Royal Philips Electronics ( PHG) will buy light fixture maker Genlyte ( GLYT) for $2.7 billion.

The light bulb giant says it will pay $95.50 in cash for each share of the Louisville, Ky., lighting shop. The deal represents a 52% premium over Genlyte's closing price of $62.67 Friday.

"This offer creates outstanding value for our stockholders and enables our management and talented associates to continue our successful strategy," Philips CEO Larry Powers said in a press release.

Philips expects to close the deal in the first quarter of 2008.

Philips shares fell 11 cents to $42.11 and Genlyte shot up 50% to $94.35 in mid-day trading Monday.