Toshiba acquisition bolsters its smart grid business
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Electronics giant Toshiba is to buy a Swiss based meter manufacturer for $2.3billion in a bid to boost its presence in the overseas grid market. The acquisition of Landis+Gyr comes amid Toshiba's plans to grow profits in its nuclear power division.
According to the Japanese electronics manufacturer, the smart grid market is expected to grow six fold over the next decade, approximately $70.9bn.
Landis+Gyr manufactures smart meter hardware and communication modules, both of which are components of smart grids. In January, the company was chosen to supply 10,000 smart meters to the State Grid Corporation of China as part of the construction of the world's largest smart grid. It has approximately 8000 utility customers worldwide and its 5000 employees operate in more than 30 countries. The firm says there are no plans for job reductions following the deal.
"Over the past 10 years we have built the world leader in smart metering," said Landis+Gyr ceo, Andreas Umbach, pictured. "As a growth platform for Toshiba, Landis+Gyr will have the resources and power to complement, and indeed accelerate, our product offering to utilities. With this transaction, Toshiba will now share our vision of helping the world manage energy better."
Subject to regulatory approval, the buyout is expected to close in the third quarter of this year.
