Philips, the Netherlands-based consumer electronics firm, said on Tuesday that it has finally decided to sell an 80.1% stake in the lighting components division for $2.8 billion to Go Scale Capital.

Go Scale Capital is a new investment fund that focuses on LEDs and electric car battery technology.

Amsterdam-headquartered company said that the deal values the subsidiary, which comprises an automotive light unit and Philips' 'Lumileds' LED business, at $3.3 billion in cash and debt.

This division of the company reported a profit of nearly 141 million euros in 2014 on sales of 1.42 billion.

Go Scale, which also has other investments in LEDs and electric car battery technology, said in a statement that it aims at expanding the businesses of using LEDs in cars.

Chairman of GO Scale Capital Sonny Wu said, "GO Scale Capital will focus on expanding Lumileds' opportunities by investing in its global centers of operation and in the fast-growing general lighting and automotive industries".

It has been told that the Go Scale Capital is presently funded by GSR Ventures and Oak Investment Partners.

Philips stated that it wanted to sell the subsidiary to become capable of presenting itself to customers, many of whom compete with Philips, as a separate entity to the man lighting business.

Go Scale's past investments include Boston Power, a US based manufacturer of electric vehicle batteries, and Xin Da Yang, a leading Eco-EV company in China.

Go Scale said that it could offer Lumileds with complementary technologies and manufacturing capacity that would allow the business to pursue further growth and scale.

Philips called the components subsidiary as a stable cash generator, as it does most of its business by selling lights, such as halogen and xenon bulbs for headlights, to automobile makers at a good margin.